Rents in regional markets are increasing faster than in capitals and this could be due to several factors, according to the latest report from CoreLogic.
During the year through April, the value of rents in regional markets rose 9.6%, more than the 3.3% gain in capital cities.
The latest report from CoreLogic, which monitored Australia's major sub-state regions, also showed a drop in the total number of rental listings. In addition, the average duration of occupancy of a rental property has increased from 25 days to 17 days in April.
Eliza Owen, head of residential research at CoreLogic, said a major driver of the rapid rise in rents was the slowdown in the movement of people from regional markets.
Figures from the Australian Bureau of Statistics show that migration from regional regions to capital cities has decreased by 4% compared to the average.
"The decline in internal migration may have resulted from the fact that work or study plans in the city were disrupted by COVID-19," Owen said.
This contrasts sharply with the growth in the movement of people from cities to regional areas. In the last quarter of the year, migration to regional regions increased.
"Regional relocation from cities to regions may also be increasingly skewed towards higher income workers, which would put upward pressure on purchase and rental prices," said Owen. "This is because remote working tends to be concentrated in the 'knowledge economy', for example for professionals, as well as for office and administrative workers."
Growth in property values ??was also seen as an important factor in increasing rental values. The price of potential owner-occupants would increase demand in the already tightening rental market.
Owen said creating more affordable housing both in the Australian region and in major cities could ease rental conditions.
"The challenge with solutions on the supply side is that they are relatively inelastic to meet very tight rental markets, especially in regional markets where the labor pool is work and materials is often shallower than that of capital. But in an environment where government programs have increased demand for private housing, social and affordable housing can also be a significant source of activity for the sector. housing construction, ”she said.
Top suburbs:
Gladesville
,
Darlington
,
nightcliff
,
nundah
,
lockridge
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