Here’s where renters are offering over the asking price

We know we’re in the middle of a rental crisis.

According to PropTrack, national rental vacancy rates - the share of rental properties that are available for rent - inched down 0.04 percentage points to 1.43% in July.

In fact, vacancy rates have halved since the pandemic as rental demand has increased.

This severe shortage of properties and the strong rental competition in the capital cities is prompting prospective tenants to offer more than the advertised price, particularly in Sydney and Melbourne.

Proptrack report that in some cases, renters are offering more than 20% above the advertised asking price to outbid others for available homes.

Rental market conditions in capital cities are especially tough, with vacancies down markedly over the past year in Sydney, Melbourne, and Brisbane.

Competition for available rentals has intensified as a result and renters living in inner-city areas are being hit hardest as CBDs have opened up for work and study.

To secure a rental over other prospective tenants, those who want to get to the front of the queue are offering to pay a premium above the advertised price.

This is evident when Proptrack compared actual weekly rent (from rental bond data) to advertised rents on realestate.com.au during the March 2023 quarter across local government areas (LGAs) in our three largest capitals.

Difference between actual and advertised median weekly rent

Of the 10 LGAs with the largest disparity between actual and asking rents, more than half are in the inner ring of their respective cities.

For Sydney, this is less than 12kms from the CBD and for Melbourne less than 11kms.

About Leanne Jopson Leanne is National Director of Property Management at Metropole and a Property Professional in every sense of the word. With 20 years' experience in real estate, Leanne brings a wealth of knowledge and experience to maximise returns and minimise stress for their clients.