Landlords must be savvy in saturated rental market
Rental stock is on the rise and is expected to continue to increase.
New analysis from CoreLogic has found the number of rental advertisements over the last year grew from the previous year. Advertisements for houses were up 8.7% over the 12 months to January 2017, while unit advertisements were up 9.3%.
“The rental market is currently seeing historic low rates of rental growth and with the amount of rental accommodation ramping up it is easy to see why,” CoreLogic researcher Cameron Kusher said.
Kusher said the growth in Australia’s population had not been met with a commensurate rise in property sales, suggesting that new migrants to Australia were increasingly being housed in rental housing owned by investors. He said a record high number of new dwellings under construction meant that the number of properties advertised for rent was likely to continue to rise.
“The impact of this is that rental growth is likely to remain dampened and those in the rental market in most regions will have an increasing number of properties to choose from,” he said.
Kusher suggested that owners of investment properties and property managers would have to adjust their weekly rents to “maximise their occupancy as well as income”, and landlords in heavily saturated areas may need to either hold or reduce their rents in order to retain or attract tenants.