Competition Heating Up for Rental Properties
The residential rental market just got tighter with the number of new listings reaching its lowest point since before the pandemic.
The availability of rental properties dropped -3.9 per cent in August, according to the Proptrack rental listing report from REA Group.
Rental volumes dropped the fastest in Melbourne at -16.9 per cent and Canberra at -29.9 per cent as lockdowns hampered the market.
Meanwhile in Sydney, “green shoots” were starting to appear with a 6.7 per cent increase in new rental properties as one-on-one inspections were introduced and activity picked up.
Change in rental listings
| Location | Monthly new listings | Annual Change | Total listings | Annual change |
|---|---|---|---|---|
| Sydney | 6.7% | -23.4% | -0.7% | -24.8% |
| Melbourne | -16.9% | 36.4% | -6.7% | 14.4% |
| Brisbane | -3.7% | -6.4% | -0.9% | -18.3% |
| Adelaide | 5.4% | -3.7% | 3.0% | -11.2% |
| Hobart | -9.8% | 8.7% | -3.2% | 3.4% |
| Darwin | -1.1% | 5.7% | 7.9% | -20.4% |
| Canberra | -29.9% | -21.3% | -18.3% | -16.7% |
| Capitals | -4.7% | -5.0% | -3.3% | -11.0% |
| Regional | -1.3% | -3.5% | -2.0% | -15.8% |
| Total | -3.9% | -4.6% | -3.1% | -11.9% |
Source: REA Group from realestate.com.au August 2021 data
REA Group director of economic research Cameron Kusher said in the report that the fall brought national rental listings to their lowest point since December 2019.
“The rental market has become even more competitive with the availability of rentals close to an all-time low,” Kusher said.
“The crunch in rental supply is being felt regionally, too. Total rental listings were at an historic low at the end of August in regional NSW, regional WA and regional Tasmania.
“Regional Victoria and regional Tasmania were the only regions in which total listings recorded a year-on-year increase.”
Nationally the vacancy rate remained at a multi-year low of 1.6 per cent in August, according to Domain.
This report showed in Brisbane, Hobart, Adelaide and Darwin landlords could use the tight levels to increase rent on new listings.
However in Melbourne, vacancy rates were continuing to rise, hitting 3.8 per cent.
Sydney remained relatively steady, with levels at 2.6 per cent since June.
While the rental market remains competitive, soaring property prices have pushed rental yields to all time lows.
