If you think it’s tough to buy a property in Oz, spare some thought for our renters, who have an average of one per cent of the market when choosing their home. Adelaide is the current titleholder of the lowest rental vacancies in the country - 0.2% availability.
Without Sydney and Melbourne it would be a complete bloodbath
Demand has increased dramatically compared to a year ago as new interstate and international travel returns—student accommodation and a move back to the city office increases more pressure on an already tragic rental marketplace.
Inflation, interest rate rises, Covid, Putin, cost of living, an election, and many more factors; we could write non-stop about our current rental market issues.
Sydney’s now historical low vacancy rates in March at 1.5% and 1.4% in April, Melbourne’s at 1.8% and 1.7% seem to be the only reason the national average has not dropped below one per cent. Every other territory in the country continued to record devastating numbers for renters
April National vacancy rates average around 1%
It’s going to be tough to secure that new lease
Prepare to compete and pay more as applicants vying for your dream rental are abundant, and landlords and agencies call all the shots. Rising rents are here and will likely continue to go up with demand and added costs and mortgage rate rises give investors almost no other choice than to raise their rents.
Current rate rises will hurt, and knowledge of more to come only adds to the fear of affordability issues for property owners and investors; they will undoubtedly have to increase income to match these new and impending costs.
If you’re a renter, prepare for a competitive application process. Landlords will choose from many potential renters, and prospective tenants will throw around a few extra dollars in offerings to the real estate gods when determining who is most suitable to sign on the dotted line.
There are just not enough properties to go around
As new unit complexes, houses, and vicinities are built, designed, or at various stages of planning to completion; they are nowhere near assisting current real estate and housing that will make an immediate difference to availability.
If you’re renting now, chat with your agent or owner. Get in front of what increases, or changes may be near. Our six- or twelve-month leases are over before we unpack, so it’s best to check your lease expiration and what your landlord has in store for the next lease period.
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Until next time and thanks for yours!