While our house price markets have been performing strongly this year, some of the rental markets around Australia have remained challenged by week fundamentals.
Rents around Australia fell sharply last year during the more difficult times of the pandemic, but more recently advertised rent arising around Australia.
The strong economic recovery is likely to bolster the rental markets, although headwinds remain.
While overall rents have ticked higher, as always our rentals markets are fragmented.
Overall Sydney and Melbourne rents are still being weighed down by weakness in the unit market - particularly in the inner CBD high rise towers and some of the near city suburbs.
Residential vacancy rates are highest in the two largest capital cities, which have been hit much harder by the lack of overseas migration (where new migrants tend to rent rather than buy when they first arrive).
While rental demand is slowly picking up, some of the fundamentals remain soft.
These markets are still seeing supply in the form of new apartment completions increase at a time of reduced demand.
More broadly, the rental market is facing headwinds from the lagging employment recovery for younger people (who are more likely to rent).
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- Also read:Sydney property market forecast for 2024
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Below are a number of charts supplied by ANZ Bank that give a good visual interpretation of what's happening in our rental markets
Now is the time to take advantage of the opportunities the current property markets are offering.
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