Rental Market News Oct 9 – Oct 16 2020

Jason Mudford General Manager OBrien Real Estate

If you can wait and not be tired by waiting

Hi Guys, it’s Jason Mudford from OBrien Real Estate with another edition of the Property News for 2020 where real estate information is on the house.

Last week was our second week since private inspections re-commenced and we are seeing the flow effects in our numbers from the pent- up demand from people seeking shelter. The largest impact in the rental market that we are seeing is in the suburbs affected by low overseas visitors. Here is the data that came out to the market during the week. Next migration numbers are expected to fall from 154,000 in the 2019-20 financial year to a net loss of 72,000 in 2020-21 and a further 21,600 in 2021-22.

Overseas visitor arrivals are down by 99.6 per cent from a year ago and in August 2019, almost 55,000 students arrived in Australia to study compared to just 50 arriving in August this year.
Interestingly the below graph shows the year on year changes in demand from overseas countries, with a decrease of 49% from China and an increase of 32% from the USA.

Overseas real estate searches Australia

The next chart below shows the changes in buyer demand and popularity in suburbs from a buying perspective since Covid-19.

Least popular suburbs since Covid-19

The demand from buyers doesn’t always equate to the demand we have from renters. For example, Box Hill South which tops the chart for the largest change in buyer demand has a September 2020 rental vacancy rate of 5.7% as opposed to in October 2019 it having the exact same vacancy at 5.7% as per SQM research and data.

That’s all for this week and remember, If you’re considering selling, launch your property onto the market with OBrien and you go into the draw to win 1 of 3 prizes with the major prize being a Volkswagen Polo valued at $26,770 including on-road costs.

That’s all for this week, I’m Jason Mudford and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.

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