Rental markets still in supply crunch

By Gerv Tacadena | 23 Sep 2021

Tenants continued to have fewer dwelling options over the past month as supply crunch persisted across majority of capital cities and regional areas.

REA Group's latest report showed a 3.9% monthly decline in new rental listings in August, reaching the lowest level since December 2019, months before the pandemic began.

The decline was brought about by the 4.7% decline in new rental listings across capital cities.

Overall, there is a 3.1% monthly and 11.9% annual decline in total rental listings in August.

REA Group executive manager for economic research Cameron Kusher said the crunch in rental supply is being felt across regional areas too.

"Total rental listings were at an historic low at the end of August in regional NSW, regional WA and regional Tasmania," Mr Kusher said.

Of all regional markets, only regional Victoria and regional Tasmania were the ones that recorded a year-on-year increase in total listings.

Changes to Rental Listings – August 2021

State

Region

New Listings

Total Listings

NSW

Sydney

6.7

-0.7

Regional NSW

-4.4

-4.9

VIC

Melbourne

-16.9

-6.7

Regional VIC

5.0

2.6

QLD

Brisbane

-.37

-0.9

Regional QLD

-1.3

-0.6

SA

Adelaide

5.4

3.0

Regional SA

22.2

6.5

WA

Perth

-2.2

-4.3

Regional WA

-8.9

-8.8

TAS

Hobart

-9.8

-3.2

Regional TAS

-11.7

-13.6

NT

Darwin

-1.1

7.9

Regional NT

42.1

28.3

ACT

Canberra

-29.9

-18.3

National

Capital Cities

-4.7

-3.3

Regional Areas

-1.3

-2.0

Total

 

-3.9

-3.1

Source: REA Group

*Highlighted ones show an increase.

Mr Kusher said the lockdowns and restrictions in some parts of the country contributed partly in the shrinking of rental supply.

Still, he said there are overhanging supply in inner-city markets dominated by apartments.

Beyond those areas, however, conditions are tight as people move away from city-centres with a desire for more space.

"We expect rental market conditions to remain tight and price pressures to increase,” Mr Kusher said.

“In contrast to the buy-sell market, it’s unlikely there will be a in swift rebound in new rental listings once lockdowns end.”

Suburbs where options for tenants are

Despite the overall monthly decline in new and total listings, some capital cities and regional markets reported an increase during the month.

For instance, Sydney and Adelaide were the two capital cities that registered gains in new listings over the month.

Meanwhile, new rental listings also increased in the regional markets of Victoria, South Australia, and Northern Territory.

In terms of total listings, only Adelaide, Darwin, and the same regional markets posted an increase in total listings.

Suburbs with biggest increases in new listings – August 2021

NSW

VIC

QLD

SA

Narrabeen

Box Hill

Mona Vale

Clovelly

Queenscliff

Surrey Hills

Mentone

Mooroolbark

Ferntree Gully

Bayswater

Ripley

Fitzgibbon

Waterford

Woody Point

Geebung

Campbelltown

Findon

Warradale

Andrews Farm

Torrensville

WA

TAS

NT

ACT

Bicton

Atwell

Bayswater

Leederville

Halls Head

Glenorchy

Lenah Valley

West Hobart

Claremont

Battery Point

Durack

Muirhead

Zuccoli

Parap

Fannie Bay

Campbell

O’Connor

Belconnen

Kingston

Casey

 

Top Suburbs : north lambton , collingwood , mayfield , newcastle , keperra

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