Following the headwinds of early 2020, the rental market finally showed signs of improvement towards the end of the year.
Capital city rents have been largely impacted by the restrictions and lockdowns brought about by COVID-19, which ultimately resulted in a shift in supply and demand.
However, the COVID-induced dip proved to be short-lived as rents began to climb back up again, particularly by the December quarter, the Real Estate Institute of Australia (REIA) has flagged.
According to the professional body, rents increased by 0.1 of a percentage point for the quarter following two quarters of falls.
It meant the year ended up showing a fall of 1.3 per cent.
All capital cities showed signs of improvement over the December quarter, except Sydney, which saw no change for the first time in more than a year — after five consecutive quarters of falls.
Further, REIA president Adrian Kelly noted that the All Groups CPI increased by 0.9 of a percentage point in the December quarter. It meant that the year reported a 0.9 of a percentage point increase over the entirety of 2020, rather than remaining stagnant.
It followed a 1.6 per cent increase in the September quarter after the June quarter recorded a -1.9 per cent decrease.
That -1.9 per cent fall was the largest seen in the 72-year history of the CPI.
Ultimately, the president stated that the figures show confidence as coming back.
It’s “on the back of improving rental market conditions across most capital cities, even though rent freezes for existing tenants remain in place in some states and territories”, Mr Kelly concluded.