PHOTO: Propertyology head of research Simon Pressley predicted rents for a standard property would surge by up to $5,000 a year by 2022. Pictured a house at Mackay in north Queensland available for $665 a week
- Propertyology is predicting annual rent increase of $2,000 to $5,000 by 2022
- Five of Australia’s eight capital cities have rental vacancies under one per cent
- Major regional centres in every state have similarly tight rental market
- Tenants face very stiff competition outside of Sydney, Melbourne and Brisbane
Australians could soon be paying $5,000 a year more in rent despite coronavirus restrictions killing population growth.
The weakest population growth since 1916 has done little to make life easier for tenants, with renters often living in caravans and even tents until an affordable house is available.
The majority of Australia’s capital cities and many regional centres have rental vacancy rates of less than one per cent and this is set to get worse as more professionals working from home flee Sydney and Melbourne.
Propertyology head of research Simon Pressley predicted rents for a standard property would surge by up to $5,000 a year by 2022.
Australians could soon be paying $5,000 a year more in rent despite coronavirus restrictions killing population growth. Pictured is a house at Maitland north-west of Newcastle being leased for $470 a week in a town with a rental vacancy rate of less than one per cent
‘To secure a standard rental property over the next couple of years, it will not be uncommon for households to need to find an extra $2,000 to $5,000 per annum,’ he said.
‘These next couple of years will produce the biggest increase in rents that Australia has seen in living memory.’
Australian rental vacancy rates
SYDNEY: 3.6 per cent
MELBOURNE: 4.4 per cent
BRISBANE: 2 per cent
PERTH: 0.9 per cent
ADELAIDE: 0.8 per cent
CANBERRA: 0.9 per cent
DARWIN: 0.7 per cent
HOBART: 0.6 per cent
Source: SQM Research vacancy rate data for October 2020
While Sydney and Melbourne have high rental vacancy rates – with very few international student arrivals – Perth, Adelaide, Canberra, Darwin and Hobart have rental vacancy rates of less than one per cent, SQM Research data for October 2020 showed.
Regional centres, too, have ultra-low vacancy rates from Maitland in the New South Wales Hunter Valley to the Margaret River south of Perth, Mount Gambier in South Australia, Mackay in north Queensland and Mildura in northern Victoria.
‘There are reports of families living in tents and caravans because there’s nothing available for them to rent,’ Mr Pressley said.
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