Ensure you never miss an issue of the
real estate business bulletin
Rental market still showing growth

Rental market still showing growth

by Elyse Perrau 0 comments

A senior economist has stated he has seen no significant change in vacancy rates across the nation, despite reports that the rental market is slowing down.

The comment follows research saying vacancy rates are creeping upwards in all the major capital cities, and investors' yields may soon begin to suffer.

Speaking to Residential Property Manager, Domain Group senior economist Dr Andrew Wilson said he has certainly seen rents still growing in Sydney and Melbourne.

“There is upward pressure on rents. If we were seeing rising vacancy rates we would see rents at least moderating, but demand for rental properties is still strong in Sydney, house prices and unit prices are still rising and there is no sign of a weakening in rental growth,” he said.

“Rents are [also] rising in Melbourne, so I am not sure I would agree that vacancy rates are rising.

“I think you need to look at the vacancy models of the local, state-based industry groups, such as the REINSW and the REIV, just to see if there is a trend,” he added.

Dr Wilson said other indicators in the rental market are not at all showing a slowdown in the Australian rental market.

“Even though we do have very high numbers of new residential investment properties in the Sydney market in particular, there are no signs that’s causing any sort of an overshoot in terms of a significant change in vacancy rates,” he said.

“We may see some marginal changes but it is certainly not translating into any changes to rents at the moment.

“In fact, the Adelaide and Brisbane markets have been characterised by very low vacancy rates.”  

Rental market still showing growth
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?