Property Investor and Rental Income Sept 2022

Property investors and your rental income: Good news on the rental front for property investors due to the serial rate increases. Rents have risen faster than at any other time in the past 14 years. 

It’s been reported that capital cities have seen a 9.1% rent increase while regional areas have seen a 10.8% increase compared to June last year.

Domain reports that Sydney remains at a record low vacancy rate, and Melbourne’s vacancy rate has dropped to 1.5%. Vacancy rates below 2% signals a landlords’ market.

SQM Research, said: “Rental vacancy rates continued to tighten across the country and there is nothing yet in the data that would suggest we are about to see a reprieve. The national rental crisis continues on unabated and as a result, asking rents are skyrocketing.”

Source: Domain

Key takeaways:

• Sydney’s vacancy rate is at its lowest at 1.4%

• Brisbane remains at an all-time low of 0.6%.

• Adelaide continues its reign as the most competitive capital city in which to find a rental, remaining steady at 0.3%.

• Canberra’s vacancy rate has moved up slightly from 0.7% and hit a six-month high at 0.8%

• Hobart has similarly moved up slightly from 0.4% for an 11-month high at 0.5% 

We’re definitely seeing a landlords’ market across Australia. However, there will continue to be change as vacancy rates stabilise nationally and even increase in some cities. As we’re also seeing the return of overseas migration and international students, this is going to put even more pressure on rentals.