Nearly a third of Sydney's landlords are cutting rents to find tenants after the outbreak, according to new statistics. In addition, Melbourne also appeared rent reduction phenomenon.
According to data released by the Domain, at the time of the strictest restrictions ,29.9 per cent of rental housing prices on the market were discounted and median rents fell by 6.4 per cent. By May, the percentage of rental units offering discounts had fallen to 27.7 per cent and the median rent had fallen by 5.6 per cent. From February to May this year, the percentage of rental flats with discounts increased by 6.2 per cent.
Nicola Powell, a senior research analyst at Domain, said the outbreak had led to a skewed rental market in favour of tenants. Overseas migrants, student gatherings and short-term rental markets were the hardest hit. Some parts of Sydney have been relatively more affected, with downtown and eastern districts becoming "worst-hit ", with 36.7 per cent of rental housing prices falling, followed by lower-shore rental housing, with 33.1 per cent on sale.
According to the data, more than 40 per cent of rental rates in the Randwick area were discounted, an increase of 22.4 per cent between February and May. The Randwick district manager of the house intermediary Belle Property, David Ibanez, said there was an oversupply of rental housing in the Randwick and surrounding areas, and the two-bedroom units listed for rent once reached 242 units during the peak period, twice the normal period.
Since foreign students are unable to return to Australia at present, many rental houses are under control, and 38.2% of rental houses in Alexandria area are also under rent reduction, and the number of rent reduction real estate has increased by 20.2%. Mascot 43.9 per cent of rental housing in the area was on sale, an increase of 22.5 per cent between February and May.
Tenants are taking advantage of this opportunity to strive for better conditions, such as keeping pets. And the landlords learned through the press that they needed to make change. for the current market conditions
In addition, rental prices for more than 25 per cent of Melbourne properties have fallen sharply in recent months as landlords try to attract new tenants during the outbreak. The latest figures show that tenants have gained the upper hand, especially densely built areas such as Melbourne's south bank and CBD,
Of all rental properties reported to have fallen in Melbourne prices, the median discount for April was 5.4 percent, up from 4.2 percent for the same period in 2019. Although rents have not changed much, the share of discounted rents is as high as 27%, compared 13 per cent for the same period in 2019.
The data show that rent discounts are most common in some suburbs. Rent cuts for house and apartments in Brunswick West、Caulfield、Docklands、Hampton、Prahran、Toorak and West Melbourne were significantly higher than 30 per cent in May.
The report quoted Nicola Powell Domain senior research analyst as saying that the inner-city rental market was hit hardest by the outbreak, the closure of borders and the shift to distance learning among college students. Powell also noted that the population most affected by the epidemic is those under the age of 29, most of whom rent in urban areas and work in heavily affected services such as restaurants, retail stores or art shops.
