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While rental markets will improve in 2021, some will remain weak - featured image

While rental markets will improve in 2021, some will remain weak

While house prices remained resilient through pandemic inflicted 2020, Australia's rental markets suffered.

Commencing in March 2020 vacancies started rising causing asking rents to declined. House Model On Top Of Stack Of Money As Growth Of Mortgage Credit, Concept Of Property Management. Invesment And Risk Management.

According to the REA Property Outlook Report the main driver of this was high levels of job loss in hospitality, tourism, and education.

If you think about it, the majority of renters are young and high proportions were employed in these sectors.

Income loss affected their ability to afford rent and was one of the reasons behind the six-month moratorium on evictions that was legislated by the Federal Government.

Another challenge for the rental market was problems in the tertiary education sector since foreign students were unable to return to Australia and many local students returned home or moved into share accommodation as classes moved online.

Median rent growth

Rental markets returning to normal

REA reports that by the end of 2020, our rental markets appear to have largely normalised but there were only two areas where rents were down over the 12-month period.

Not surprisingly, given high levels of unit development over recent years, plus higher exposure to student markets, Melbourne and Sydney unit markets saw the biggest drop in rental prices.

More positively, not everywhere was hit by poor levels of rental demand.

Regional Australia did particularly well, whether led by growth in the mining sector, or alternatively, people looking for more space and taking advantage of change
working conditions.

For houses, regional NSW saw the biggest jump in rents, increasing by 5 per cent.

For units, strong mining conditions pushed up rents 6.7 per cent in regional WA.

Rental listings

REA forecast that while a rental market recovery is imminent, the rebound for inner Melbourne will be slow.

Melbourne has seen the biggest increase in rental listings on since the start of the pandemic.

In fact, Victoria accounts for almost 85 per cent of the increase in vacant units since the start of the pandemic, highlighting the effect the prolonged lockdowns had on tenant demand.

Melbourne CBD saw an additional 4,341 units vacant year-on-year in December 2020, far more than any other location in Australia.

Now is the time to take advantage of the opportunities the current property markets are offering.

Metrople Team

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.

We help our clients grow, protect and pass on their wealth through a range of services including:

  1. 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
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $4Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment-grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. 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.

About 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.
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