The rental market is set to be especially competitive over the coming year – and it’s set to increase the demand for longer term leases, according to one individual.
Richard Saville, the creator of the Break Your Lease app, believes the reopening of state and national borders will place greater demand on rental properties across Australia.
It will be especially apparent in Queensland, where many are looking for employment, family and lifestyle changes.
Some of the demand will also come from expats moving home from overseas.
According to Mr Saville, “this demographic and will no doubt stay in a rental property while they look for a home to buy”.
Due to all of these factors, Mr Saville has forecast that the rental market will be especially competitive next year. As a result, he said tenants would be keen to secure tenancies with longer lease times than is usually seen across Australia’s markets.
Reflecting on 2021, he said this year has seen “the start of a property market that is especially competitive with high numbers of applicants attending viewings”.
According to Mr Saville, “tenants respond by requesting longer lease terms from 12 months to two or three years, similar to the commercial property leases. The problem is the rental rate will increase due to demand.”
Down the track, this may result in tenants do find they need to break the long tenancy that they have negotiated for one legitimate reason or another.
It follows a recent explosion in tenants who are looking to break their lease, with Mr Saville previously citing lifestyle changes as a contributing factor to the increase.
In a recent REB article, Mr Saville had said the pervasive feeling of “languishing” in one’s home, job, or routine – which came into the spotlight during the pandemic – has translated into a movement of people around the world deciding to change their situations.
ABOUT THE AUTHOR
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.