Urban life has recovered, overseas travel has resumed, and many are returning to the capital-the driving force behind all rental demand. At the same time, rental demand at regional hubs remains strong.
Rent supply and demand imbalances have become more pronounced in the capital over the past few months and continue to be a problem in rural areas.
There are several main reasons for this.
The first is the reopening of national and international borders. Short-term vacation rentals converted to long-term rentals during the pandemic may be withdrawn when travel is possible again. This contributes to the shortage of traditional rental supply.
The reopening of the border has boosted rental demand.Photo: Getty
The return of international students is also expected to boost rental demand and exacerbate shortages in the suburbs of central Tokyo.
Second, local rental demand is unwavering. Even today, with the widespread adoption of remote work, many Australians are seeking to move to areas that offer a natural or seaside lifestyle. This continues to put pressure on local rents.
To find out how much demand is increasing, we looked at the number of days it took for a rental property to be rented after it was posted on realestate.com.au.
The average number of days for rent in Sydney in February was the shortest since March 2017. Last month, it took an average of 22 days for a home or unit at realestate.com.au to be rented.
Melbourne shows a similar trend, renting on average 24 days after listing. This is the fastest pace since March 2020.
The number of days on the rental site in Melbourne is the lowest since March 2020.Photo: Getty
Rents in both Brisbane and Adelaide were record average minimum days last month on the 16th and 15th, respectively. Demand is relatively strong in these capitals due to their affordability and lifestyle offerings.
In New South Wales, Victoria and Queensland, the length of stay in rental properties is approaching record lows in the past year as a result of a pandemic outflow to the city center.
More insights from a team of PropTrack experts:
This widening gap in rental supply and demand means that it is different for the lessor and the landlord.
Renters will get out of more pockets and face intensifying competition with other future tenants, but landlords can expect higher returns on their investment and rent their property. It will be much easier.
In the long run, lessee bailouts can come in the form of increased supply as more investors enter the market. This is a trend that has already been seen.
The value of new loans to investors will increase further in 2022, and as more investor purchases are traded, lessees may have a little more choice and less competition.