Bad news for property renters. Only 3% of all properties for rent are available in Australia. That means it is getting increasingly difficult to rent an apartment in Australia. The trend is that nothing is going to change during the first half of 2011.
In December, only 2.2% of rental properties were vacant. The worst scenario is in Sydney and Perth. According to Louis Christopher from SQM Research Melbourne is the only city where is a bit easier to find a rental apartment at the moment with 3.6% of rental homes vacant.
The shortage in vacant homes for rent will increase the rent prices in Australia in 5% with Sydney probably reaching 9%.
Vacancy rates in December 2010
- Sydney 1.7 per cent
- Melbourne 3.6 per cent
- Brisbane 2.8 per cent
- Adelaide 1.4 per cent
- Perth 1.5 per cent
- Canberra 0.9 per cent
- Hobart 1.3 per cent
- Darwin 2.8 per cent
- National 2.2 per cent
The increase in demand for houses for rent and the huge increase in rental prices in 2011 is due in part to the fact that Sydney ranks as the second-most-unaffordable housing market in the English-speaking world in a survey which ranked 325 markets by their affordability.
The housing prices in Sydney are out of reach, although specialists say that we can expect a slightly drop in the second semester of 2011. For those who are living in Sydney like myself, it has been impossible to find a good 3 bedroom house/apartment in Northern Beaches under $1. 2 million.
Also, the offer of houses in the market is low and Sydney is in need of new housing developments. A condominium of eight buildings recently built in Balgowlah had almost all units sold within a few months.
In a recent Poll taken by SMH 88% of voters considered that the high price of housing in Australia is killing the Great Australian Dream.
It sure is.
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