IndieG

at the top end have come off significantly in Melbourne?

I suspect this may be as a result of doing away with LAFHA. Just a matter of time before this percolates down to the mid-range rentals I suppose?

moneypenny20

I wouldn't have thought so, LAFHA isn't so commonplace that it would have such an impact. Imo anyway.

IndieG

Then I wonder what other reason could there be - job losses?

I'm not talking small falls - 30-40% and houses remaining vacant up to 2-3 months.

chris955

I would imagine a visa change is going to affect rents too much. More likely down to the general downturn, job losses, that kind of thing.

IndieG

I'm not too sure that it is due to job losses - am guessing it is senior executives on LAFHA that could afford to pay $1500-2500 p/w in rent?

moneypenny20

But it's not been cut for everyone and some people have managed to renegotiate their salary to take into account the loss of LAFHA. It's a very small percentage of people in the national (or Melbourne) rental market who have suffered from the loss of LAFHA.

pumpkin blossom

People are just being smarter with their money 'just incase'. Just about every industry I talk to people in say work is slower than it was 3-4 years ago.
Restaurants, garden centres etc are going bust as people cut back on non-essentials. I guess people will be finding it harder to justify such high rents too.

chris955

I actually said the general downturn, not just job losses.

IndieG

Yes, you're probably right. About time that rents came down though and I see that as a good thing

Bermudashorts

Expat senior execs are not going to be in such great numbers, and leaving in such great numbers, that rentla prices have been impacted in the 12 days since LAFHA went away!!

Beoz

It might ... there are probably also fewer top end properties out there.

I've noticed similar in Sydney. Properties that could have once rented for over $1000 per week are now under $1000 per week, though those is the muid range have gone up a little.

Lets hope the removal of LAHFA is having the desired affect

Beoz

There is no general downturn .... it's your wishful thinking

Zen10

Don't get too excited if there's too much deflation they'll just start printing money like the Americans and British. That'll put them back up again!

Bermudashorts

I have not been monitoring prices, but even if they are dropping at the high end of hte market I really cannot believe it is because of senior execs losing LAFHA, the senior execs would have the clout to negotiate.

Of course it is good that rents are dropping, if they are.

IndieG

Doesn't affect me (rents)...