City rental pressures
Rental pressures are now building in the inner cities according to PropTrack, as immigration gets set to return.
New rental listings have a seasonal flavour to them:
Total rental listings have now dropped to record lows across metropolitan areas.
The most searched suburbs are all in the inner cities now, reported PropTrack.
The outlook tightens
Pressures in the rental market are likely to intensify in 2023 due to a range of factors.
Notably there is now record demand for student visas from all across Asia, and India in particular, which will begin to have a major impact soon as the February term times commence.
And lending standards for landlords are extremely tight, with large assessment buffers of 3 percentage points now in place for well over a year.
This suggests a major rental crisis may unfold in Sydney and Melbourne in 2023.
PropTrack only recorded modest declines for property prices in 2022, and early auction results this year have been surprisingly very strong, probably reflecting a lack of quality stock on the market.
However, markets are still looking for two further increases in the cash rate target in February and March, which will add further to buyer caution, including from landlords...despite the sharply rising rents.
You can find PropTrack's latest rental report here.
