Small catch in positive sign for Aussie renters

REA Group’s October PropTrack Rental Listings Report — which takes a monthly snapshot of new and active rental listings on realestate.com.au — reveals that while the rental market remains competitive across the board as national new listings are down 12.9 per cent year-on-year, some cities are providing more choice for would be renters.RELATED: Aussie city’s rents rising faster than all other capitalsWhere you can nab a prize home for as little as $2New listings in Melbourne and Canberra are up 16.7 per cent and 22 per cent respectively for the month, while Sydney has also shot up 1.8 per cent.REA economist Angus Moore said the PropTrack report highlighted an easing of restrictions in Melbourne and Canberra buoyed the rental market in September, bringing more stock to rental seekers who have been patiently waiting to find a property. “Eased restrictions on inspections in September were a welcome change for renters. Given they were only introduced mid-month, the impact of eased restrictions on inspections has only been partially felt in September.” he said.“We expect to see ongoing strength in new listings in October in Melbourne and Canberra as the full effect of these changes flows through.”However, with some Covid restrictions continuing until at least November, total supply is likely to remain limited in the short-term. Unsurprisingly, given the widespread sea and tree change shift spurred on by the pandemic, total rental listings in the regions are 40 per cent below their pre-pandemic levels.“Despite the uptick in new listings, total rental stock remains low as the impact of two years of restrictions are felt,” Mr Moore said.As a result, renters searching in regional areas face particularly tight conditions and a low level of available stock to choose from.“For some people, living regionally and working remotely might make sense to do over the long-term. For others, it won’t, and we’ll see some of that shift to the regions unwind,” the PropTrack Economist and report author said. As that shift unwinds, we’d expect that to free up some rentals in regional areas and help alleviate the tight conditions we are seeing there. But will we see the trend of regional migration that we’ve seen over the past 18 months completely reverse? It’s unlikely, but time will tell, Mr Moore added.Regional renters in WA and NSW are facing the tightest conditions with new listings dropping 8.5 per cent month-on-month in regional WA and falling 4.9 per cent in regional NSW where they are now sitting just above their historic low. The REA Group listings research comes just one day after property data firm CoreLogic released its quarterly rental review which revealed Australian asking rents had increased at their fastest pace since 2008. Regional dwelling rents rose 2.2 per cent over the September quarter compared to capital city dwelling rents, which increased by 1.7 per cent. Regional Australia’s 12.5 per cent annual rate of rental growth in September was the highest yearly figure since CoreLogic began its rental index in 2005. In comparison, the combined capital cities recorded an annual rental growth of 7.5 per cent over the same period – the highest annual growth rate for the combined capitals since January 2009.How lockdown is challenging housing supply

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October 28, 2021 at 12:30AM
REA Group’s October PropTrack Rental Listings Report — which takes a monthly snapshot of new and active rental listings on realestate.com.au — reveals that while the rental market remains competitive across the board as national new listings are down 12.9 per cent year-on-year, some cities are providing more choice for would be renters.RELATED: Aussie city’s rents rising faster than all other capitalsWhere you can nab a prize home for as little as $2New listings in Melbourne and Canberra are up 16.7 per cent and 22 per cent respectively for the month, while Sydney has also shot up 1.8 per cent.REA economist Angus Moore said the PropTrack report highlighted an easing of restrictions in Melbourne and Canberra buoyed the rental market in September, bringing more stock to rental seekers who have been patiently waiting to find a property. “Eased restrictions on inspections in September were a welcome change for renters. Given they were only introduced mid-month, the impact of eased restrictions on inspections has only been partially felt in September.” he said.“We expect to see ongoing strength in new listings in October in Melbourne and Canberra as the full effect of these changes flows through.”However, with some Covid restrictions continuing until at least November, total supply is likely to remain limited in the short-term. Unsurprisingly, given the widespread sea and tree change shift spurred on by the pandemic, total rental listings in the regions are 40 per cent below their pre-pandemic levels.“Despite the uptick in new listings, total rental stock remains low as the impact of two years of restrictions are felt,” Mr Moore said.As a result, renters searching in regional areas face particularly tight conditions and a low level of available stock to choose from.“For some people, living regionally and working remotely might make sense to do over the long-term. For others, it won’t, and we’ll see some of that shift to the regions unwind,” the PropTrack Economist and report author said. As that shift unwinds, we’d expect that to free up some rentals in regional areas and help alleviate the tight conditions we are seeing there. But will we see the trend of regional migration that we’ve seen over the past 18 months completely reverse? It’s unlikely, but time will tell, Mr Moore added.Regional renters in WA and NSW are facing the tightest conditions with new listings dropping 8.5 per cent month-on-month in regional WA and falling 4.9 per cent in regional NSW where they are now sitting just above their historic low. The REA Group listings research comes just one day after property data firm CoreLogic released its quarterly rental review which revealed Australian asking rents had increased at their fastest pace since 2008. Regional dwelling rents rose 2.2 per cent over the September quarter compared to capital city dwelling rents, which increased by 1.7 per cent. Regional Australia’s 12.5 per cent annual rate of rental growth in September was the highest yearly figure since CoreLogic began its rental index in 2005. In comparison, the combined capital cities recorded an annual rental growth of 7.5 per cent over the same period – the highest annual growth rate for the combined capitals since January 2009.How lockdown is challenging housing supply