The rental market is a complex space to navigate these days. Some of our offices are reporting quick conversions, while others are suggesting the quality of applications are few and far between.
The key issue being supply vs demand. The completion of developmental projects in certain regions are providing momentary relief for applicants. However, with immigration laws lifting in an already very tight rental market, it doesn’t look like rental pressures will be easing anytime soon.
Canberra is reportedly the most expensive capital city to rent in the country. Although on a quarterly basis house rent growth dropped 1.4%. There is still so much competition for available rentals it is likely rents will continue to rise.
Some experts are saying that there are uneven shifts within the capital’s regions which could indicate a change is coming. These are the first recorded declines in house rents since mid-2020—"a little bit of that pressure has been released in the rental market due to an increase in investment activity flowing into new supply on the market.” (Dr Nicola Powell, Domain Chief of Research).
Compared to other global OECD cities, the ACT region is forecast to have the strongest growth in the next ten years and perhaps why this city is attracting a boom in the build to rent sector.
This region has a particularly transient workforce of high-income earners underpinned by public sector employment, consulting and supporting services. According to JLL Alternative Investments Managing Director, Tim Mutton, as the seat of the Australian Government, it is relatively insulated from changing economic situations making it attractive to investors and presenting compelling value on a risk adjusted basis.
What suburbs in this region are at the top providing the highest rental yield? According to this article, Throsby, Richardson and Taylor are in the top three.
When it comes to liveability, a key buyer motivator, the south coast is due to steadily perform strongly as a lifestyle location. QBE’s Australian Housing Outlook (2022-2025) predicts regional NSW price growth set to continue to post “strong outcomes” in the year ahead.
For any further information or queries regarding your investment please contact your local Blackshaw Real Estate professional.
Helpful Links:
Draft Legislation to improve ACT tenancy laws
Allhomes September 2022 Rental Report
