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RENTAL VACANCIES JUMP TO THE HIGHEST RATE IN THREE YEARS AMID THE COVID-19 PANDEMIC

Written by Jodi Finnan

RENTAL VACANCIES JUMP TO THE HIGHEST RATE IN THREE YEARS AMID THE COVID-19 PANDEMIC

COVID-19 has created a surge in residential property vacancy as the virus has forced those living overseas in Australia have been forced to return home leaving a vast amount of properties untenanted.

The total number of vacancies Australia-wide is now at 77,664 properties for rent, a rise of just under 10,000 dwellings over the past 12 months.

While this may be bad news for real estate agents, the fall in rental property prices has been a welcome change to those searching for a new home but frustrated by the high rental rates in some of the more sought-after suburbs.

The reduction in rental prices have been necessary to attract new tenants after the vacancies rose due to factors such as job losses, foreign tenants being forced to return home as well as the properties normally reserved for short-term holidays rentals like Airbnb being moved to the rental market as long-term rentals as borders closed internationally.

With only Darwin and Perth avoiding the increase in vacancy rates, the table below shows the recent impact of COVID-19 across Australia.

 

Capital city rental vacancy rates – April 2020
April 2020 March 2020 April 2019 MoM ∆ YoY ∆
Sydney 3.9% 2.7% 3.2%
Melbourne 2.8% 1.6% 1.7%
Brisbane 2.9% 2.1% 2.6%
Perth 2.4% 1.8% 3.2%
Adelaide 1.2% 0.8% 1.1%
Hobart 1.3% 0.6% 0.5%
ACT 2.4% 0.8% 1.2%
Darwin 3.5% 3.3% 4.5%
National 2.5% 1.8% 2.2%

Source: Domain.com.au

Fortunate landlords may have been able to secure a payment deferment or already have a mortgage insurance policy in place, whereas those who have not will lead the likely reduction of rental prices across the board. Paying tenants, even at a discounted rate, will be a relief for some buy-to-let landlords.

 

 

 

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