Sydney, Melbourne rents pounded

Via Domain:

Source: Domain Rent Report, December quarter 2020
UNITS – MEDIAN WEEKLY ASKING RENT
Capital City Q4 2020 QoQ Change YoY Change
Sydney $470 -5.1% -7.8%
Melbourne $388 -3.0% -7.6%
Brisbane $400 1.3% 3.9%
Adelaide $340 0.0% 7.9%
Perth $350 2.9% 12.9%
Canberra $495 3.1% 3.1%
Darwin $420 7.7% 7.7%
Hobart $400 0.0% -2.4%
National $432 -3.4% -5.7%
HOUSES – MEDIAN WEEKLY ASKING RENT
Source: Domain Rent Report, December quarter 2020
Capital City Q4 2020 QoQ Change YoY Change
Sydney $550 1.9% 4.8%
Melbourne $440 0.0% 2.3%
Brisbane $425 2.4% 3.7%
Adelaide $410 1.2% 5.1%
Perth $420 6.3% 13.5%
Canberra $600 3.4% 3.4%
Darwin $550 12.2% 10.6%
Hobart $460 2.2% 0.0%
National $469 2.0% 4.8%

Another very good reason why Sydney and Melbourne are going to lag the global property recovery materially.

That said, it is reasonable to expect a sharp rebound in ex-Chinese tourists and international students through H2 this year which will bring the adjustment to an end.

David Llewellyn-Smith
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Comments

    • Strange Economics

      Sadly rents in the inner west sydney seem to have rebounded. After a 150 a week drop over the year, they are back up 100. Might be the XMAS/ New Year moving season. The area is mainly families, probably working from home so not as affected, but the city and student apartments rent is still way 100 a week down as no punters Still 200 a week over what some of these places are worth !

    • Strange Economics

      The state govts have gotta stop this working from home ” to support the CBD as they say” – Actually . It would ruin inner city real estate prices if you could live anywhere.

  1. Sydney and Melbourne figures will be affected by the crash in inner city dogboxes. Everywhere else will be doing just fine (Sydney house rents are up 4.8%). One needs to take average/median numbers with a grain of salt as these two markets in particular will be bifurcating.

  2. Just got a 8.8% drop in rent ES sydney.
    1 apartment in building still needs renting. 3 in next door building still needs renting.
    Some have been on market for 3-6 months. This is going to go on for another year.

  3. Around my area, after the musical chairs period of Q2 last year, things stabilised with a new set of bagholders refusing to further cut the rent to fill their empty properties and thus setting a floor on further rent drops.

    I guess they are holding out for the recovery but with stimulus gradually being withdrawn and no promise of new arrivals anytime soon they will eventually be forced to cut further.

  4. billygoatMEMBER

    I get impression agents taking a leaf out of land banking model and doing same with rental properties…drip feeding into markets with tiny 10% reductions once application completed prior to property viewing. The new normal I’m told. Ex commission houses locked up and vacant at least 3 out of 10 houses. I play live ‘spot the Aussie’ & empty homes as I walk a mates dogs. White bread Australia west of Melbs – ex factory & port workers fibro shacks now home to wealthy furr reign student types (bizarrely auto corrects to rupees…I kid you not) if my eyes are to be believed..same with new face of Australia advertising for just about everything. Aussie males be gone. Aussie Wyatt folk be gone from our screens, billboards, shop posters, pamphlets, ATM screens, insurance ads, universities, secondary schools, primary schools, kindergarten, day care, cities, houses, homes, streets, cafes, pubs, country towns, soon they’ll come for our B&S balls …showing my age..maybe they’re already gone baby gone😐

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