Plenty of positives in 2022 for Mornington Peninsula property investors

Investors will likely enjoy 2022 on the back of the most optimistic outlook for rental incomes since 2008.

Rents nationally averaged an increase of almost 10% last year despite a Covid roller-coaster ride on which many city apartments sat empty after students and non-citizens headed home because of the pandemic.

While gazing into the crystal ball is risky at the best of times, the onslaught of Omicron and any variant that might follow makes predictions especially tricky.

But as an experienced real estate agency that is proud to call the Mornington Peninsula home, we can see how the data reflects the supply and demand for rental properties in our area. We remain positive about the prospects for the next 12 months for both owners and investors.

Property values rose significantly last year – nationally, they were up 22%. That's always great news for investors as capital gain should always be a vital component of your investment strategy. 

Industry researcher CoreLogic suggests value growth is not finished, although it will likely be more modest this year.

Of course, with property values rising at historic levels in 2021, rental yields are smaller. In fact, CoreLogic says they're at their lowest since records began. 

Investors should take a long-term view because rental payments will continue to climb on the momentum of last year's 9.4% average increase, and we believe that they could out-pace tapering property values.

Great long-term investment opportunities are likely to emerge across the Mornington Peninsula in 2022 as strong rental demand fuels attractive returns. While we are not likely to see the market exuberance of last year, we do believe 2022 will be a fascinating time for investors. We hope you find these extra observations helpful, too.

Supply is key

Local factors will influence values more than national economic issues. The size and quality of local housing stock available for sale on the Mornington Peninsula will be critical. Remember, Australia is not one massive real estate market but thousands of micro-markets, each with characteristics that influence time-on-market and prices. 

Rate rises

Money will start becoming more expensive. However, increases in the interest rate will be slow and unlikely to impact the market dramatically as they are currently coming directly from the banks themselves rather than mandated by the Reserve. Many buyers will have already factored in this risk. Though please keep monitoring any changes to this and as always seek professional advice. 

Virus unknowns

Omicron and any variants that might follow remain the great unknown. Governments are making it clear we should live with the virus, and the economic stimuli provided previously is no longer available. Ultimately, how this virus affects the property market in 2022 is anybody's guess.

For any assistance with your investment property or to discuss switching property management to Abode Peninsula please call 03 5974 1100.