The substantial increase in rental properties available on the Sydney and Melbourne markets could potentially slow the growth of rents, according to a forecast by Domain.
During the first quarter of the year, Sydney and Melbourne reported an increase in house and unit rents.
In Sydney, median rents increased by 1% to $ 530 for houses and by 2% to $ 520 for dwellings. This is Sydney's first quarterly earnings in three years.
"A drop in investment and construction activity in an era of steady population growth has helped tighten the rental market," said Nicola Powell, senior research analyst at Domain.
On an annual basis, the median Sydney rent for houses and units decreased by 1.9%. Yet Sydney continues to have the highest weekly unit rents and the second most expensive house rents in all capitals.
In Melbourne, both types of housing experienced an increase in rents. On a quarterly basis, rents increased 2.3% to $ 440 for homes and 2.4% to $ 430 for housing. The city also posted an annual gain of 2.4% for the units.
However, the recent increase in rents in Sydney and Melbourne may be short lived due to the increasing number of vacant properties on the market, said Powell. This increase in rental listings will therefore provide some relief to some tenants.
"Some landlords moved their short-term vacation rental property to the long-term rental market during the coronavirus pandemic. Some tenants may also choose to reside with their families while our lives are affected by them. social distances, fears for job security and the economic situation. uncertainty ", she said.
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