PropTrack has released data showing that the total number of homes for rent across Australia’s capital cities has plummeted 26.3% year-on-year and are now at the lowest they have been since February 2003:
Moreover, the most populous cities have seen the greatest falls in total rental supply over the past year, led by Melbourne (-36.5%), Sydney (-25.8%) and Brisbane (-17.8%):
PropTrack expects the tight supply of rental stock in major capital cities to persist, given “the impetus to move regionally is slowing and international migration is lifting, most of which will be into major capital cities”.
In turn, these forces mean “it will only become more difficult to rent a property in the capitals during 2023”.
PropTrack is especially concerned about the rental situations in Sydney and Melbourne, which will attract the lion’s share of international students and migrants.
“In Sydney and Melbourne, the two largest rental markets in the country, rental stock is reducing quickly and demand for rental properties is increasing. Most of the overseas migration that will occur over the coming years will be in these two cities, which will increase demand for rental accommodation”.
Meanwhile, Meriton has written an email to its leasing and building management team advising them to increase rents aggressively amid a “hot” rental market and the strong return of international students.
“As you are aware, the market is on fire and vacancy extremely low, so please ensure you’re pushing rents as hard as possible” the email read.
“Students are arriving and we will see record numbers”.
“For HOT/family units, please ensure you push above targets, especially if you have nothing available and doing six-month leases”.
“I recommend starting with a six-month lease, as this gives you the opportunity to increase the rent sooner in a rising market”, the email read.
Clearly the rental hunger games have begun in Australia, exacerbated by the Albanese Government’s ‘Big Australia’ mass immigration policy.
