BIS Oxford: Rents to remain weak for years

This week’s CPI data for the December quarter, released by the ABS, showed that Australian rental growth hit the lowest rate in the series’ 45-year history, growing by just 0.2% in calendar year 2019:

Chief Australia economist at BIS Oxford Economics, Dr Sarah Hunter, believes that rental growth will remain weak until the end of 2021 or early 2022:

That’s because the number of building approvals have found their trough in the current cycle, meaning the number of new buildings coming on to the market will hit rock bottom in roughly 18 months’ time.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.