According to the latest analysis from the Property Investment Professionals of Australia (PIPA), Australian rental markets are currently in a "critical under-supply" as investor activity softens.
Analysis has shown that some small capitals are currently struggling with a substantial under-supply of rental properties as vacancy rates hit record highs.
Recent reports from SQM Research show that during the period from March 2017 to March 2021, vacancy rates dropped significantly in Brisbane (3.5% to 1.5%), Perth ( 5% to 0.9%) and Adelaide (1.7% to 0.8%).
Even in the main markets of Sydney, Melbourne and Queensland, insufficient supply was also apparent, said Peter Koulizos, president of PIPA.
"Vacancy rates in Sydney and Melbourne city centers have skyrocketed over the past year due to the loss of international students and migrants to the United States. abroad, but even many suburbs of these cities are also experiencing an under-supply of rental properties, ”he said.
Koulizos said this sub-offer was the result of lending restrictions introduced in 2017 which hampered investor activity.
The decline in investor presence was quite evident, particularly in May of last year, when segment activity fell to its lowest level in 20 years. Activity has dropped by around 50% since the restrictions began.
"At the time, the restrictions went into effect due to the strong growth in real estate prices in Sydney, but investors around the world were also barred from securing loans. financings, even in markets where market conditions were favorable at the time, such as Perth, Adelaide and Brisbane, "Koulizos says.
Given the situation in the rental market, Koulizos believes it is crucial that policymakers do not make the same mistakes in their strategies for controlling investor activity.
"Putting policies in place to solve a problem that is supposed to be short-term can have long-term ramifications, which is the dire situation tens of thousands of tenants are currently experiencing," he said.
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