New rentals snapped up at historically high pace
New rental listings are being snapped up quicker than ever before, according to one listings portal’s figures from the month of July.
New data from PropTrack has revealed that rental properties advertised on realestate.com.au are renting in an average of 19 days, a historic low for the firm since it first began advertising homes for lease.
Two of the nation’s capitals also recorded their shortest time frames for available listings, with Brisbane dropping to 15 days and Sydney properties taking an average of 21 days to find new tenants.
Across the country, figures were similarly tight, even if not at the lowest levels ever experienced. Adelaide properties only spent an average of 16 days on site, Perth’s properties were being leased in 17 days, Darwin 18 days, Hobart 19 days, and Melbourne recorded the longest duration for listings at 22 days.
At a national level, the number of total available rental listings was almost a third lower than pre-pandemic levels, and rents were up 8 per cent compared to 12 months ago.
Eleanor Creagh, a senior economist with PropTrack, foreshadowed that competition for properties will only grow more fierce in the months ahead, with a surge in new migrants expected to flow into the country.
According to the Home Affairs Department, the number of international students applying for visas hit a record high, with June seeing the largest number of offshore applications received in a single month in the last 10 years.
The levels of student applicants stayed steady through July, with an average of 10,000 student visa applications a week received — an almost 40 per cent increase on pre-pandemic levels.
In line with this, PropTrack has recorded a fierce uptick in the level of searches for rentals originating from international locations.
“Overseas searches to rent have also skyrocketed in recent months. In the last six months compared to the six months prior, overseas rental search volumes are up 59 per cent with the borders having reopened,” Ms Creagh said.
It’s hoped that investors will be buoyed by this apparent demand and increase their activity, particularly as their market participation has yet to get back to its pre-pandemic pace.
“Strong rental demand, a low supply of stock, and the potential for strengthening rental yields is likely to keep investors engaged. But while investor activity has picked up off COVID lows, it is still nowhere near the level it was at a few years ago, indicating that rental supply could be set to remain constrained,” Ms Creagh said.
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