Sydney Today, April 4, Australian Eastern Time According to the latest data, the asking rents for House and Apartment stopped increasing in March, despite the low vacancy rate.
According to a report by Fairfax Media’s Australian Property Monitors, as of the end of March, the average weekly rent for houses nationwide was A$3, which has remained unchanged since December. The average weekly rent for an apartment fell 409% to $12 per week.
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Andrew Wilson, senior economist at APM, said that a more active buying market has put pressure on the rental market. “We found that buyer activity was more active than in the second half of 2011 and early 2012. NSW’s realization is the most obvious, but Queensland Buyer activity with Western Australia has also increased. I think this has reduced demand in the rent market."
In March, only the provincial capital cities had an increase in rents, Hobart and Darwin, and only House rents showed an upward trend. Apartment rents in no capital city have risen, and Sydney, Canberra, and Darwin have seen significant declines. The APM report pointed out that although this is bad news for real estate investors, the income from rent has not decreased due to the decline in house prices.
Dr Wilson believes that the current situation may only be short-term. The shortage of housing and the continued increase in demand for real estate will put pressure on the rental market, especially in areas such as Sydney and Perth with low vacancy rates. But the Melbourne area is an exception, because there are many vacancies there, and "continues to be the friendliest rental market in Australia, and rents have a downward trend."
The APM data only analyzes the published asking price of the property rent, and does not consider the rent already paid or the rent increased. According to the latest Australian Bureau of Statistics, rents nationwide increased by 4.8% last year.
Tim Foote, chairman of Belle Property Mosman, located on the low coast of Sydney’s north, said that there is a great demand for rental housing with a reasonable price of less than A$1000 per week, but there is no pressure to increase rents. “There are places where rents are rising, and there are places where rents are falling. There is no major trend in the houses. Every house needs to be analyzed in detail.” (Ivy)