CoreLogic’s October dwelling values report showed that rents continue to soar.
House rents rose another 0.5% in October, with annual growth remaining exceptionally strong across Brisbane (13.6%) and Adelaide (13.1%):
Unit rental growth is even stronger, rising 1.1% in October with double-digit growth recorded across Melbourne (13.7%), Sydney (13.4%), Brisbane (13.1%) and Adelaide (12.4%):
Since the onset of the pandemic, capital city rents have risen 17.7% and regional rents are up 25.5%.
Meanwhile, separate CoreLogic data shows that rental listings have plunged to their lowest level in around a decade across the capital cities:
CoreLogic attributes the explosive growth in unit rents to the resumption of mass immigration, alongside the shift to more affordable rental options:
The trend towards higher rental growth across the unit sector is evident across most of the capital cities and rest-of-state markets. This demand for medium to high density styles of accommodation can probably be attributed to rental demand transitioning towards more affordable rental options such as units, along with the added demand from overseas migration which tends to favour inner city unit rents, especially in Melbourne and Sydney.
Unsurprisingly, Melbourne and Sydney are also recording the highest annual rental appreciation for units, with rents up 13.7% and 13.4% respectively over the past 12 months.
The federal budget forecast that nearly one million net overseas migrants will arrive over the next four years:
Yet, even these explosive net overseas migration forecasts look understated given record numbers of students are already arriving in Australia:
Where will the hundreds of thousands of migrants arriving every year live when there is already a chronic shortage of rental accommodation for the existing population? In tents? On the streets?
The Albanese Government’s ‘Big Australia’ mass immigration policy is a disaster in the making.
