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Shrinking supply? Not in these suburbs

By Staff Reporter
06 February 2024 | 10 minute read
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PropTrack has recently scrutinised rental figures available through realestate.com.au to pinpoint where in the nation the number of rentals is currently expanding, despite the overall dwindling supply.

The number of rental listings throughout the country has slipped to historic lows, and vacancy rates remain tight across the states and territories. However, micro-markets chart their own path, and regional economic factors can cause localised fluctuations that may see rental availability open up at a certain point in time.

PropTrack has released a list of the top 10 suburbs with the greatest year-over-year change in new rental listings, finding inner-city areas that have recently been home to some major building are now starting to bear fruit in terms of added rental supply.

These were the suburbs with the greatest increase in rental listings between December 2022 and December 2023:

1. Haymarket, NSW - 118.2 per cent
2. Morayfield, Qld - 79.2 per cent
3. Newstead, Qld - 76.2 per cent
4. Zetland, NSW - 71.6 per cent
5. Spring Hill, Qld - 68.8 per cent
6. Redbank Plains, Qld - 50.8 per cent
7. Palm Beach, Qld - 50 per cent
8. Hurstville, NSW - 48.4 per cent
9. St Leonards, NSW - 48 per cent
10. Pakenham, Vic - 47.2 per cent

Haymarket, right in Sydney’s bustling centre, led all suburbs nationally, more than doubling the number of rentals available from December 2022 to December 2023.

Newstead in inner north Brisbane was also a standout performer, experiencing a 76 per cent surge in rental supply.

Renters in Zetland, situated in the inner south of Sydney, and Spring Hill, located in inner north Brisbane, also saw a healthy uptick in stock, experiencing increases of 71 per cent and 61 per cent respectively.

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As Megan Lieu, economic analyst at REA Group, highlighted many of these suburbs have also benefited from the resurgence of central business districts, and forecast the kind of growth that is often attractive to investors.

She noted, however, the causes behind overall rental supply decline are widespread factors that will hamper this kind of growth if not enough is done to stimulate change.

“The pace of new home construction is insufficient for the current level of demand. High material, labour and financing costs are contributing to decade-low rates of dwelling approvals and commencements,” Ms Lieu said.

“While investor lending and buying are trending upwards, investors are still selling at higher rates than in pre-pandemic times, putting pressure on stock availability,” she added.

As these trends persist, the economist warned that the likelihood of seeing significant growth in rental supply in the near term is low, and that even with minor fluctuations, renters will continue to face challenging conditions in the long term.

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