Rental markets in capital cities have begun to welcome new offers, providing relief to tenants who have had limited options in recent months due to lockdowns.

According to REA Group, the number of new rental listings on realestate.com.au rose 17.3% in November to the highest level since March 2021.

All cities reported significant gains in rental offers, with Canberra showing the largest monthly growth at 49.6%, followed by Darwin’s 35.9% and Hobart’s 27%.

Both Sydney and Melbourne also ended the month with higher quotes from the previous month, as activity picks up after the lockdown.

Growth in new rental offers

Nov 2021

Capital

Grow (%)

Sydney

15.2

Melbourne

21.8

Brisbane

15.5

Adelaide

12.9

Perth

11.9

Hobart

27.0

Darwin

35.9

canberra

49.6

NATIONAL

17.8

REA Group economist Angus Moore said these new offers are a relief to renters after months of low offers.

“Advertising has been low for most of this year – and especially during lockdowns when few people moved in, meaning few rental properties came onto the market,” said Mr Moore.

Mr Moore said November is a typically active month in the rental market, but the emergence of Sydney, Melbourne and Canberra from lockdowns could also provide a significant boost to landlords’ and tenants’ prospects.

“The rental market is quite seasonal – a lot of activity is concentrated in January, but November is also typically one of the more active months in most capital cities.”

However, data from SQM Research showed that vacancy rates in capital cities remained tight, with five out of eight cities now having vacancy levels below 1%.

No reception for regional tenants yet

While potential tenants in capital cities are now given more options, the same cannot be said for tenants in regional markets.

Mr Moore said there is still no relief in sight for regional tenants as new listings stalled.

While regional new quotes rose 15.5% in November, they remain more than 20% lower than in February 2020.

However, Mr Moore believes that recent data showing increased investor interest in regional areas should help ease pressure on the rental market.

“If we see more investment in homes in regional areas, it will help increase the stock of available rental housing,” he said.

Photo by @hiveboxx on Unsplash.

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