As we push through winter, we've been fortunate that the season has been relatively mild. A little sunshine goes a long way this time of year, helping keep properties dry and making inspections, maintenance and leasing a little easier than we often experience during the colder months.
Across our leasing portfolio, we're seeing the seasonal slowdown we'd typically expect through winter. Despite that, vacancy remains exceptionally low at around 0.5%, demand continues to be strong, and most properties are still attracting multiple applications. Rental values have also continued to edge higher, which is slightly unusual for this time of year and perhaps reflects the broader economic backdrop we're all navigating.
One of the most common conversations we're having with landlords at the moment centres around the Federal Government's taxation changes and what they may mean for residential property investment. The honest answer is that it's still very early.
While there has been plenty of commentary, we're only just beginning to see how investors are responding in the real world. At this stage, we're still seeing some new investors enter the market, although the profile of those clients has shifted. Increasingly, we're seeing existing homeowners purchasing another property while retaining their current home as an investment. In many cases, that strategy appears to sit outside some of the proposed taxation changes commencing from 2027.
At the same time, we're also hearing a very different story from mortgage brokers. Many are telling us that investor lending has slowed dramatically as purchasers pause to seek taxation advice and better understand the implications of the new legislation before making long-term decisions. It's an interesting contrast. On one hand, rental demand remains extremely strong. On the other, uncertainty around future investment decisions has increased.
If investor activity remains subdued over the coming years while population growth continues, basic supply and demand would suggest ongoing pressure on rental availability and, in turn, rental values. Whether that ultimately eventuates remains to be seen, but it's certainly one of the scenarios we're watching closely. History tells us that whenever governments introduce significant changes to property taxation, the market rarely responds overnight. The full effect often takes several years to become apparent as owners, investors, lenders and advisers gradually adapt to the new landscape.
For now, the rental market remains stable. Properties continue to lease well, demand remains healthy, and our focus continues to be on minimising vacancy, securing quality tenants and ensuring every property is managed proactively through what remains a changing economic environment.
Of course, conditions can evolve quickly. Another interest rate increase, changes in lending policy or further taxation announcements could all influence sentiment over the months ahead.
If you'd like to better understand how these changes may affect your investment property or you're considering your next move, we'd encourage you to speak with your Property Manager or one of our Sales team.
The advantage we have is that we don't simply analyse the headlines. Every day we're speaking with landlords, tenants, buyers, sellers, mortgage brokers and valuers. Those conversations provide a real-time understanding of the market that often appears well before it shows up in the data.
