There’s more bad news for apartment investors – which means good news for renters – as rents plummet and availability of units soars in Sydney and Melbourne.
This is in stark contrast to stand-alone houses where rents are rising steadily and availability is contracting … except in Melbourne.
“Rental vacancy rates for houses remained low in most capitals over March, continuing to put upward pressure on rents as tenants desperately scramble to secure available properties,’ says Dr Andrew Wilson, Chief Economist with Archistar property analysts.
“Latest data from Archistar reveals that capital city house vacancy rates, with the exception of Melbourne, remained below 2.0% with Adelaide, Perth, Hobart, Darwin and Canberra remarkably all below 1.0% – and Brisbane just above,” he adds.
“Melbourne remains the exception with clearly the highest capital city house vacancy rate – and continuing to rise.
“Reflecting low vacancy rates, all capitals, again with the exception of Melbourne, have recorded increases in house rents over the past year. Canberra, where annual house rents were flat, however remains clearly the most expensive capital for tenants.
“Unit vacancy rates also remain tight in most capitals with the notable of exception of Melbourne and Sydney where record-level inner-city apartment vacancies have resulted in sharply falling rents.
“Housing shortages and sharply higher rents have emerged in most capitals with the exception of Melbourne where interstate migration shifts and a CBD apartment glut are providing relief for local tenants.
“Similarly, Sydney’s inner city apartment market also reflecting the impacts of border restrictions is providing more choices and lower rents for tenants – with no relief for landlords in sight.”