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).
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.
Sure the markets are moving on, but not all properties are going to increase in value. Now, more than ever, correct property selection will be critical.
You can trust the team at Metropole to provide you with direction, guidance, and results.
Whether you’re a beginner or an experienced investor, at times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s exactly what you get from the multi award-winning team at Metropole.
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- Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! Click here to learn more
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- Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management – Our stress-free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years, and our properties lease 10 days faster than the market average.
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