The COVID-19 epidemic has led to several changes in the rental market, including an increase in the number of rental properties sold, according to the latest study from Suburbtrends.
According to the study, 11% of the properties put up for sale during the first week of May came from the rental market.
"I expected to see something high, but certainly not at this level. What will be interesting now is the number of owners who leave the ship due to a personal financial stress, especially once the stimulus ends in a few months, "Kent Lardner, director of Suburbtrends, said in a LinkedIn article.
The highest share of processed rents for sale was at ACT, where one in five homes offered for sale is rental property.
"I now have two concerns. First, selling prices are being pushed down in oversupplied markets. Second, the long-term impact on rentals, with potentially fewer properties available for a growing pool of renters nationwide, "said Lardner.
A recent report from SQM Research stated that the economic impacts of the COVID-19 epidemic have caused an "explosion" in rental vacancy rates in major CDBs.
"This could be attributed to the significant loss of jobs in our CBD as well as the decline in the number of international students. We are well aware of a large increase in housing short term rentals currently advertised for long term rentals, "said Louis Christopher, director director of the SQM.
The sustained increase in rental listings could then lead to a deeper drop in rents, said Christopher.
Main suburbs:
lambton north
,
Narara
,
tweed heads south
,
Mayfield
,
artarmon
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