Powell said vacancies were expected to rise in the coming months, but vacancies were likely to fall in the new year, particularly in Melbourne, as immigration increased and more international students arrived.
A studio apartment in Melbourne student accommodation is advertised at $320 per week.Credit:field
She said Melbourne’s inner city had recorded one of the highest unemployment rates in the city at 1.8 per cent since being hit hard by the lockdown.
Mr Powell said the government needed to reduce the cost of home ownership to ease rental demand, while increasing housing supply in middle-ring suburbs, encouraging more build-to-rent developments and offering long-term leases.
Daniella Ferraro, of Harcourts Melbourne City, said most properties in inner-city Melbourne were rented within two weeks.
Rents have climbed from lockdown lows and high levels of inquiries have resumed, but applications remain low. However, Ferraro expects that to change as more international students return home.
“[The vacancy rate] There will be further declines … especially in certain parts of the city; high-rise areas and areas close to universities,” she said. “These apartments are going to be rented out very quickly, and I would say the rents are above average. “
In Sydney, the lowest vacancy rates were in the central and outer suburbs of Penrith, Camden, Campbelltown, Bankstown and Sutherland, which all recorded a vacancy rate of 0.5 per cent.
A three-bedroom house in Penrith is currently being advertised for $450 a week – the suburb’s median weekly rent.Credit:field
Greg Taylor, director of Stanton & Taylor Real Estate, said rental demand in Penrith, more than 50 kilometers west of the CBD, jumped at the start of the pandemic and has continued since as more people moved to the area for more affordable housing. good affordability.
Meanwhile, rental supply dwindled as some landlords cashed out and other would-be investors stayed on the sidelines as property prices soared.
Most rental properties receive multiple applications and are rented out within a week, Taylor said, and a growing number of tenants are willing to pay more to acquire a property.
“People are paying an extra $20 to $50 a week, sometimes more, and we’ve had cases where tenants put up six months’ rent in advance,” he said.
In Melbourne’s Maroondah area, where the vacancy rate is 0.4 per cent, a three-bedroom Ringwood house is advertised for $395 a week.Credit:field
Joel Dignam, executive director of tenant advocacy group Better Renting, said low-income earners have been hit the hardest by the rental shortage.
“There’s this funnel effect where those who are least likely to compete for a better property … are pushed further and further down in terms of the quality of property they’re forced to accept,” he said.
Tenants have been reluctant to hand over bank statements and other private information to avoid missing out on properties, Dignam said. Others feel they have no choice but to bid on rent, which will only drive up market rents.
“People can’t walk away, they need to find a place to live,” he said.
If governments are serious about improving housing affordability, they must play a role in: adjust rent As part of a suite of tools, Dignam said.
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