Rents surge as listings fall to their lowest since 2003

Australian tenants paid extra for rents over the primary quarter of the yr as competitors for the restricted rental inventory intensified.

REA Group’s PropTrack Rental Report confirmed a 4.7% improve in weekly rental costs in Australia, the strongest annual acquire since 2015.

The rise was obvious throughout capital metropolis and regional markets, with the latter posting a stronger quarterly and annual development.

Over the primary three months of the yr, weekly rents throughout mixed regional markets rose by 10.3% year-on-year versus the 1.1% acquire for capital cities.

When it comes to property sort, homes maintained its extra stable place than items after reporting a 6.7% year-on-year improve in rental costs in comparison with the latter’s 2.4%.

PropTrack director of financial analysis Cameron Kusher mentioned the demand for rental properties stays close to file excessive ranges nationally, sitting at an historic peak all through the mixed capital cities in March 2022.

“The amount of properties listed for lease at a nationwide degree has continued to scale back over current months, exacerbating shortages of inventory and pushing the price of renting increased,” he mentioned.

Actually, whereas new listings elevated month-to-month over March, they fell on year-on-year phrases.

Moreover, regardless of this month-to-month acquire, new itemizing volumes had been nonetheless 12.5% decrease than their 10-year common.

This has affected the overall listings, which have fallen by 5.4% month-to-month and 26.9% year-on-year, hitting the bottom degree since August 2003.

Mr Kusher mentioned there’s some proof that a few of the rental pressures have began easing in sure regional areas.

“Sunshine Coast, Geelong, and Southern Highlands and Shoalhaven are three prevalent markets the place a number of indicators recommend rental demand is slowing,” he mentioned.

“Different regional areas may even see related traits emerge as those that moved throughout lockdowns both resolve to remain and probably look to buy fairly than lease, whereas others could now look to relocate again to the key cities provided that they’ve re-opened and lockdowns have ended.”

Nonetheless, Mr Kusher mentioned renting stays robust for a lot of Australians throughout the nation, a situation that might probably exacerbate with the re-opening of worldwide borders and the re-commencing of migration.

“That is anticipated to be most prevalent in Sydney and Melbourne, the 2 largest rental markets within the nation and the 2 markets which have, till just lately, been experiencing falls in rental charges,” he mentioned.

“Whereas the rise in investor buying that has been occurring ought to add to provide out there, it should take time for this extra buy exercise to alleviate the present provide pressures.”

Picture by @jontyson on Unsplash