[ad_1]
Australian renters looking to move had slightly more choice in April, but with competition for available housing still fierce, prices are likely to continue to rise.
Vacancy rates remain at very low levels in most parts of the country, leaving more tenants struggling to secure the few properties available and pushing up market rents.
And while April saw a slight uptick in the national vacancy rate, according to real estate data firm PropTrack, conditions for tenants remained tough, with just 1.21% of properties remaining vacant for the month.
Even with the 0.09 percentage point increase in April, PropTrack economist Ann Flaherty said job vacancies are still less than half of what is considered healthy.
“With a shortage of vacant properties, rental properties continue to be subject to high levels of competition, driving up rental prices,” Ms Flaherty said.
Canberra and Perth had the most significant increases in vacancy rates, with the latter recording its first increase in vacant rents since July 2022.
Tenants looking for a new place saw a 9.1% increase in advertised rents in the 12 months to March, based on data from the property data firm, and analysis by the Reserve Bank of Australia suggests more pain is to come.
The dynamics of the housing market, keeping rents and property prices high, are taking time to unwind, the central bank’s chief economist, Sarah Hunter, said in a speech on Thursday.
New housing construction has been slow, fewer people are living together and the population has grown rapidly since borders reopened after the pandemic, keeping prices high.
And while there were signs that developers were responding to strong housing demand by building more homes, she said that was taking time and many projects were not yet viable.
[ad_2]
