Rents are rising across the nation as undersupply bites, according to research by industry expert Propertyology. Propertyology’s head of research Simon Pressley says that 39 of Australia’s 52 largest towns and cities – 75% of the total – have an undersupply of properties. Only four out of 52 major Australian cities and towns have a residential vacancy rate of 3% or higher (as at 30 June).
Five out of the eight capital cities have shortages undersupplied though Sydney and Melbourne remain oversupplied, along with the Gold Coast (4%) and Geelong (3.5%).
Propertyology says a market with a balanced supply has a vacancy rate between 2–3%. Vacancy rates above 3% mean there are more choices for tenants, which places downward pressure on rent prices.
“The only thing currently preventing an official declaration of an Australian rental crisis is the sedation effect of the coronavirus containment measures,” Pressley says. He suggests the shortage has been caused by the low number of mum-and-dad investors buying properties in the past year or two.