2024 Bendigo Rental Report Q4

Meet the team – Janelle Fiedler

1) How long have you lived in Bendigo? Excited to say I have only been living here since September 2024 & loving it!

2) What’s your favourite Bendigo Restaurant? You can't beat a fantastic Lamb Rump at the Marong Family Pub

3) What’s your bucket list travel destination? Definitely a selfie with the Quakkas on Rottnest Island!

4) If you could go back in time 10 years what would you tell yourself? Don't sweat the small stuff!

5) What are you watching on TV at the moment? Landman - Billy Bob Thornton is an amazing actor!!

6) What’s your favourite thing about working at PRD Bendigo? Too many things come to mind, but a few would be the support I get from the Property Management Team, the culture is definitely a big tick & they laugh at my jokes!!! LOL 🙂

PRD in the community

PRD Bendigo has a long history of community engagement, but in early 2024 our Directors had a vision to create something more permanent. Out of that was borne the PRD Bendigo Community First Fund. A dedicated fund with the sole purpose of supporting the community that supports us. Every quarter the Fund will nominate a new beneficiary and we’ll provide financial, workforce and marketing support as we try to help others make a difference.

We’re incredibly proud to announce that for the first quarter of 2025, we will be supporting Southern Cross Kids Camps.

Southern Cross Kids Camps runs Camps across the country for where they aim to create an environment for life change with children who’ve experienced trauma. It’s truly a humbling thing to be a small part of.

If you’d like to learn more about their great work, click here. It’s truly a worthy cause and one that’s close to my heart.

2024 in review

Overview

The data for the 2024 Calendar year paints a really encouraging picture for the Bendigo property market. Pricing has stabilised, and although yields in some areas have softened, other areas are improving. Long term all the indicators are looking really positive.

MEDIAN PRICES – After the Median price declines which were a feature of the first half, the back end of 2024 rebounded so we finished the year where we started! But there were some phenomenal pockets of growth. Long Gully for example saw Median prices jump an incredible 11.9%, Kangaroo Flat 5.4% and Eaglehawk 4.1%.

The flattening of the curve through the back end of 2024 can give buyers confidence that the declines have ceased and the market is primed to rise particularly if we happen to see some interest rate relief throughout 2025.

But as I pointed out in my last newsletter, the long-term growth data really does speak for itself. An astonishing 20-year growth of just over 200% outstrips growth in the ASX comfortably. It all reinforces Bendigo as a safe, secure and stable market to invest in.

Vacancy Rates

Vacancy Rates through the Calendar year remained under the REIV’s “ideal” level of 3%, although the rental market did soften a little into the back half of 2024 as Investors regained confidence and started returning to the market. The Greater Bendigo Vacancy Rate at the close of 2024 sat at 2.4% which did reflect a softening from the sub 1% rate of mid-year however the end-of-year departures of University students and medical interns does traditionally see the vacancy rate peak at that time of the year so I would expect the next data set to show something closer to the 1% mark

Yields

Yields held firm, but again there were significant differences between suburbs. From a broader Great Bendigo perspective the average house yield sat at a relatively 3.4% (although even that is above Melbourne’s average yield of 3.1%), however as with median prices, there were some pockets of well-above-market results. Again, the popular areas of Long Gully and California Gully led the way offering an average yield of 5%. Eaglehawk averaged 4.4%, Golden Square 4.6% and Kangaroo Flat 4.5%. All healthy yields in strong growth suburbs. No wonder Investors are returning!

Recap

So the future looks promising. Is the worst of the pricing correction over? It does look that way as gains made in the back half of 2024 offset losses incurred in the first. The softening of Vacancy Rates and Yields is more a reflection of the influx of new investors to the market resulting in a commensurate increase in supply, combined with November and December being a traditionally soft period of vacancy in Bendigo. I would expect both these indicators to improve through 2025. Bendigo has never really been a short-term speculator’s market and this data shows that, while it also shows the patient investors are justly rewarded with some enviable growth.

For what it’s worth, my personal feelings are that the market feels primed and ready to move forward at the first sign of genuine interest rate relief. I think it’ll take more than a single RBA cut to start the train rolling, but there’s a level of pent-up demand of first-home buyers and mover uppers just waiting in the wings to jump.

Hot topic!!!

Minimum Rental Standards

Minimum Rental Standards have been a feature of the Victorian rental landscape for some time now and we’re starting to see increased attention from Consumer Affairs Victoria (CAV) after a groundswell campaign on social media and the looming penalty enforcement date in October. A copy can be found below.

The current Minimum Standards seek to improve the basic living conditions in rental properties. According to yipmag.com.au these are the top things to look for before your property hits the market…

1. Energy-Efficient Heating: Rental properties must have an energy-efficient fixed heater in the main living area, which aligns with the push toward greener, cost-saving solutions for tenants.
2. Mould and Damp Prevention: Properties must be free of mould and damp caused by structural issues. Addressing these problems not only meets legal standards but also reduces maintenance costs in the long run.
3. Ventilation: Adequate airflow in habitable rooms, including bathrooms and laundries, is mandatory. Installing exhaust fans in wet areas will prevent moisture buildup and improve tenant comfort.
4. Window Security and Privacy: Bedrooms and living areas must have curtains or blinds that block light and provide privacy, with external windows fitted with functioning latches for security.
5. Secure Entry Doors: All external doors must have functioning deadlocks or locks that can be unlocked from the inside without a key while providing adequate security from the outside.
6. Bathroom and Kitchen Compliance: Bathrooms must have a washbasin, and showers must have water-efficient showerheads. Kitchens need at least a stove with two burners, and both kitchens and bathrooms must have access to hot and cold water.
7. Structural Integrity: Rental properties must be structurally sound and weatherproof, ensuring long-term durability and tenant safety.
8. Toilet in Good Working Order: It is essential that toilets are fully functional to avoid common tenant complaints.
9. Bins for Waste Management: Landlords must provide both rubbish and recycling bins to ensure tenants can easily manage their waste.

From October 2025 penalties of up to $57,00 for Companies and $11,000 for individuals will begin to apply so it’s vital to make sure your property is up to scratch. We would expect Consumer Affairs to come out fairly aggressively once the current grace period has expired so be sure to be across your obligations.

Don’t forget, we’re here to help you navigate these things so if you’re not getting the right support from your current Property Management don’t reward them with your business. Give me a call anytime to talk about switching! It’s easier than you think.

Your Investment Specialist

Remember, I’m here to help. There are pockets of suburbs racing ahead, while there are others being more sluggish. I can help you work out which one is which. Whether you own Investment Properties already, or you’re thinking about entering the market I can help with analysis, feedback, benchmarking and industry knowledge. I’m just a phone call away and would love to help you make great choices and get the most out of investing in Bendigo! I can also talk to you about the best Property Management offering in town. We truly offer something the others just can’t. Call me to talk more!