Rental demand in central Tokyo is recovering rapidly, and rental prices are expected to continue to rise as the transition progresses.
As a result, finding a rental property is becoming more difficult.
Since the start of the COVID-19 pandemic, prices in the domestic rental market have risen significantly. However, in Sydney and Melbourne, residents have escaped strict restrictions and blockades.
Recently, with the end of the blockade and the reopening of national and international borders, interest in rental properties in the city center, especially near the university, especially in Sydney and Melbourne, has skyrocketed.
In this column, we will focus on some central rental SA4 areas across the country. They are Sydney-City and Inner South, Sydney-Inner South West, Sydney-Inner West, Sydney-Ride, Melbourne-Inner, Melbourne-Inner East, Melbourne-Inner South.
It is clear that the stories to be told between the house and the unit are very different. Each of the seven regions has recorded an increase in home rents over the past year, but unit data show that prices have not fallen or changed at all.
Despite rising rents in these areas, only Sydney-Inner West and Sydney-Ride have returned to historically high prices.
Rent prices there rose 6.7% and 7.9%, respectively, from the pandemic lows.
In the unit market, rents have risen over the past year only in Sydney-Inner West. Rents are below peaks in each of the seven regions, but all have risen in recent months since the pandemic’s lows.
Rents are generally cheaper than before the pre-pandemic of homes and units in these areas, but prices are now starting to rise again.
New rental properties fell 12.2% year-on-year across the country, but each of these seven regions has recorded significant declines, with new rentals declining by more than 20% in most regions.
Looking at the total rental supply, which has decreased by 24% from the previous year nationwide, it is the same story.
Each of these regions has recorded a decline of more than 30% over the past year, with Melbourne-Inner’s 47.5% being the largest decline in any SA4 region in the country.
Comparing total supply to the level of March 2020, the month of the first pandemic blockade, supply levels are still rising in the Melbourne region, with a total list of 6.5% for Melbourne-Inner and Melbourne-Inner East. It is 24.1% and 13.5% higher. Melbourne-Higher in Inner South.
Aggregate supply, on the other hand, is currently low in all regions of Sydney.
Rental supplies continue to rise in these Melbourne areas, but have fallen sharply from the peak of the pandemic.
Before the pandemic, Melbourne-Inner accounted for 6.7% of all rental properties nationwide, Melbourne-Inner East 1.6% and Melbourne-Inner South 1.7%.
During the pandemic, they rose to 15.6%, 3%, and 3% shares, respectively, and now they account for 9.8%, 2.7%, and 2.6% of rental properties across the country.
Rental supplies in these markets have remained elevated compared to pre-pandemic levels, but are now declining very rapidly.
Rental date on the premises
Sydney-Ryde is the only region of the seven SA4 regions that had a record low of 23 rental days on the site in March. However, due to increased demand, the number of days on each of the seven sites has dropped significantly over the past year.
Nationwide on-site rental days have been reduced by 4 days over the past year, but for all 7 regions analyzed, the smallest decrease was 9 days in 4 regions and as large as 15 days in one. Masu-Melbourne-Inner.
Other than Sydney-Ryde, rental days on sites in these regions have exceeded record lows by 4-6 days, but demand remains strong and supply remains limited, so site rental days are Continue to straddle these markets.
Rental demand by list
Rental demand, measured by listing, has increased significantly over the past year, up 37.1% year-on-year.
The 37.1% increase in annual rental demand is undoubtedly strong, but across the seven regions, demand growth ranges from 58% in Melbourne-Inner South to 104.8% in Melbourne-Inner.
In each of the seven regions analyzed here, rental demand per list initially softened during the blockade, but has been escalating consistently these days, with demand per list reaching record highs in March. It culminated in each of the seven regions.
Each of the seven regions analyzed is one of the top 10 SA4 regions across the country for rental demand growth over the last 12 months.
Renting real estate in many city centers is becoming much more difficult and much more expensive.Photo: Getty
Where are you from here?
Rent supply continues to decline, while demand is rising rapidly, especially in central Tokyo, where learning to live with COVID-19 is returning to normal life.
Borders have been reopened and foreign entry has begun to accelerate.
But for now, they are well below pre-COVID levels. Eventually they will come back, and we know that many new arrivals from abroad will rent first, usually in the city center of Sydney and Melbourne.
In the coming months, rental prices will continue to rise, supply will continue to decline, the number of days on the premises will decrease, and demand will continue to rise in central Sydney and Melbourne.
Residents will find it increasingly difficult to secure properties and rents are expected to rise further in most of the big cities.