Canberra rent up to Australia "Hunger Games" by Tenants (Chart/Australasian Page Screenshot)
In Canberra, tens of thousands of new civil servants, soldiers and academics will start their new jobs and lives here from January. Soon, enrolled college students will join them. These people all need house. To that end, every summer, Canberra`s rental market plays out "Hunger Games," despite being a relatively small city with a labor force.
Competition for more than 50 people in an apartment
The Canberra rental market goes through a very difficult time every summer, with more than 50 tenants typically submitting applications for an apartment, the Australian reported on Tuesday.
This year, experts predict the most intense competition in the realestate market. Canberra has become Australia`s most expensive capital city for renting independent homes, according to new analysis by Australian realestate research firm Domain. Apartment rental is second most expensive except Sydney.
Canberra`s rent "first down and then up"
In fact, not long ago, Canberra was a good place for tenants. Since Tony Abbott`s government days in 2013, the chief has lost more than 6,000 government jobs. The loss of employment coincided with an oversupply of new apartments, causing rental prices to plummet.
However, CoreLogic research director Tim Lawless points out that the leader`s real estate market has performed very differently in the past five years than in the rest of Australia.
"We have seen rents rise at about 3 per cent a year. "Meanwhile, average rents in Australia are rising at a rate of just 1 per cent a year, slightly lower than the salary increase," he said. "
While rents have edged down for most Australians, they have risen significantly for Canberra," at a rate of more than 5 per cent or 6 per cent a year in the last five years in the most popular neighbourhoods."
In the most affected neighbourhoods, such as Aranda, Campbell and Downer, annual rent increases averaged about 8 percent over the past five years.
Canberra renting for hard reason
Despite the loss of civil service jobs, economics in the north is actually booming compared to the rest of australia. Coupled with the city`s high incomes, this is the main reason Canberra is now suffering from a rent crunch.
"The population growth in the Northern Territory is very strong, be it interstate or overseas. "Meanwhile, over the last five years, we`ve seen above-average job growth in Canberra," Raulis said. "
However, the benefits have not spread entirely throughout the city, with Raulis noting that many factors have led to the attraction of tenants in parts of the region, but not in parts.
"You can see light rail developments across Canberra, these are areas that benefit from improved transport infrastructure. "he said.
Professionals to recruit
Simon and Rebecca Humphrys, from Adelaide, have found Canberra`s summer market in realestate too frustrating. To that end, they started a company suitable for stranded tenants.
The two will inspect the house on behalf of the user. Their users usually have difficulty applying for enough property for successful tenants.
While Canberra renters won more rights three months ago, Mr Humphrys said keeping pets made it harder to choose a house.
"If you already have a pet, they can basically refuse it, but if you keep it after you check in, there`s not much they can do. "Ms. Humphrys said.
