CoreLogic has released data showing that apartment rents across Melbourne and Sydney have now tanked by 6.6% and 5.8% respectively over the seven months to 31 October:
This follows a sharp rise in Sydney (3.5%) and Melbourne (3.8%) rental vacancy rates:
While detached house rental listings in Sydney are fairly tight (7,848), there was a whopping 22,246 units available for rent as at 25 October:
Similarly in Melbourne there were 8,175 detached houses available for rents as at 26 October, versus a whopping 21,889 units available:
As noted in my recent report, NSW is facing a bigger supply glut with 42,000 net dwelling additions versus a 2,000 population decline forecast in 2021 and 34,000 net dwelling additions versus 7,000 population increase forecast in 2022:
Victoria also faces a growing supply glut with 51,000 net dwelling additions versus 13,000 population growth forecast in 2021 and 48,000 net dwelling additions versus 30,000 population increase forecast in 2022:
Thus, we expect the collapse in immigration and international student numbers to drive apartment vacancies up further.