Tuesday, 31 October 2023

Rental crisis to worsen, again

Rental market mess

PropTrack's quarterly rental report showed rents rising +3.8 per cent over the third quarter, to be +14.6 per cent higher over the year.


Source: PropTrack

Those 'in the know' say that a further interest rate hike will be required in November to bring inflation down faster.

One of the problems with that is that a further hike in interest rates will send even more builders and developers broke, while knocking more property investors out of the rental market...in turn, ironically, increasing rental price inflation.

In Q3 2023, new rental listings crashed to their lowest level on record for this time of year (and that's ahead of the usual Xmas plunge). 


Source: PropTrack

Total listings are also at their lowest ever level for this time of year, and falling fast. 

Source: PropTrack

Sydney (-30 per cent) and Melbourne (-32 per cent) have each seen rental listings declining way below their 5-year average, and so too has Perth (-30 per cent), taking the vacancy rate for capital cities to an all-time low. 

PropTrack concludes, in short, that the rental market is, well, farked.

It's worth noting that there are still super-sized regulatory lending assessment buffers in place limiting the flow of credit for investors and those wishing to buy or construct new property. 

You can read the PropTrack rental report here.

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