Jul 2025 Newsletter
HEY NEIGHBOUR!
Here’s our take on what’s been happening in the last month
Earlier this week, The Reserve Bank of Australia (RBA) has once again opted to keep interest rates on hold, citing lingering inflationary pressures in the services sector, cautious wage growth, and broader global economic uncertainty. While headline inflation has eased slightly, it remains above their target range of 2–3%, and the RBA maintains that tight monetary policy is necessary to bring it under control.
However, from where we sit, it’s difficult to ignore the toll this is taking on everyday Australians — particularly mortgage holders — who feel the squeeze more than ever. While the official line is focused on economic prudence, it increasingly feels as though these policies are doing more to protect bank profits than ease the cost-of-living crisis. Many households are simply struggling to keep up with monthly repayments, with little real relief in sight.
As we close out the financial year, it’s a good time to reflect on the state of the rental market. Over the past 12 months, rents have remained high across Melbourne but have largely stabilised in recent months. Despite the broader economic challenges, we’ve seen strong rental demand continue. At The Neighbourhood Property Collective, we’re proud to report exceptionally low vacancy rates — rarely more than 2 to 6 properties vacant at any one time over the past six months. It’s a testament to our proactive leasing strategies, thorough renter selection, and hands-on property management. Generally this next quarter always seems to slow down a little, renters are usually settled in their homes, less overseas students arriving so less demand until things ramp up again after September.
Beyond the property landscape, the past month has also seen several deeply unsettling stories dominate headlines. The verdict in the Morwell mushroom deaths case has finally brought some closure to a tragic and bizarre chapter, but even more disturbing is the shocking revelation surrounding a childcare worker found guilty of harming dozens of vulnerable children in his care — a case that has left many parents and communities shaken. These events serve as a stark reminder of the importance of vigilance, accountability, and trust in the systems we rely on every day.
As we move into the second half of the year, we wish you warmth, resilience, and continued success — both personally and professionally. We look forward to supporting you through whatever the next season may bring.
Stay warm and take care,
Carmela
MARKET INSIGHTS
We strive to stay up to date on the latest market trends. Here are a few articles we think are worth reading.
Rental Crisis Impact: Property Managers at Breaking Point (realestate.com.au)
A national survey reveals the mounting toll Australia’s rental crisis is taking on property managers. With growing tenant distress and systemic gaps in support, many agents are reporting severe burnout and mental health strain. The profession is increasingly exposed to traumatic situations—without the training or recognition to match the emotional demands.
Key Takeaways:
- Over 50% of property managers report psychological distress; 23% are considering leaving the industry.
- Property managers are frequently exposed to tenant trauma, including homelessness, domestic violence, and suicides.
- Experts are calling for trauma-informed training to better support agents on the frontline.
- Systemic failures in support and recognition are contributing to high burnout and industry exits.
Mortgage Deserts: How Climate Change Is Reshaping Housing Finance and Design (realestate.com.au)
As climate risks escalate, the housing sector is facing a dramatic shift. The article "Mortgage Deserts" explores how environmental threats like floods and bushfires are influencing where—and how—we can build, finance, and insure homes.
Key Takeaways:
- Regions with high climate risk are becoming “mortgage deserts” as lenders pull out of disaster-prone areas.
- Insurance is harder to obtain and more expensive in vulnerable zones, creating “climate abandonment zones.”
- Climate-resilient architecture—such as fireproof materials, elevated structures, and passive cooling—is on the rise.
- Market demand is shifting toward homes built to withstand climate challenges, reshaping housing desirability and value.
New Energy Efficiency Standards for Rentals – What You Need to Know (consumer.vic.gov.au)
From 1 March 2027, minimum energy efficiency standards will come into effect for Victorian rental properties. At the start of a new lease or conversion to month-to-month, you’ll need to ensure your property includes:
• A 4-star showerhead
• Ceiling insulation (if none exists)
• Energy- efficient cooling in the main living area (minimum 3-star system)
• Draughtproofing of external doors, windows, and wall vents (from 1 July 2027)
If your heating or hot water system fails after March 2027, it must be replaced with an energy-efficient option.
Cooling Systems Deadline: 1 July 2030
All rental homes must have energy-efficient cooling installed by this date, regardless of lease terms. Early upgrades may be eligible for rebates through the Victorian Energy Upgrades program.
Blind Cord Safety Standard from 1 December 2025
To improve safety for children, all corded internal window coverings in rental homes must be secured with an anchor to prevent loose loops. Free safety kits are available.
Support & Exemptions Available
Rebates will help offset upgrade costs (e.g. ceiling insulation by early 2026). Exemptions may apply where upgrades aren’t feasible (e.g. heritage rules or centralised building systems).
