Looking for a rental? New listings flood the market as hard-up tenants leave

Australia’s rental market has been flooded with new listings as people rush to lower the cost of living during the coronavirus crisis and back out of their properties to find cheaper accommodation with relatives.

New data from Domain revealed 39,252 more properties have been listed over the past two weeks alone.

The data, which compared the average number of weekly listings for the two weeks between March 16 and 29 with the average weekly listing for the previous four weeks, saw listings in capital cities surge, with Tasmania up 58 per cent, ACT up 29 per cent, NSW up 19 per cent, Victoria up 18 per cent and Queensland up 21 per cent.

Overall, across the nation, rental listings jumped by a staggering 19 per cent in just two weeks.

Domain economist Trent Wiltshire said people who had lost their jobs were looking for ways to save money by moving back in with their parents or partners and vacating properties. 

There were also more short-term rentals coming onto the full-time rental market, he said.

“It does seem like there’s an Airbnb effect,” Mr Wiltshire said. “We’re likely to see the rental vacancy rate rise and downward pressure on rents because there is more choice in properties.”

As renters contend with unstable employment and struggle to pay the rent, landlords are also facing hardship through a loss of rental income with some looking to drop rents to fill the vacancy.

In South Brisbane, one-bedroom, one-bathroom and one-carpark apartments had come back onto the market as people moved back home.

Business development manager with Place Residential rentals Rebecca Russell said landlords were quickly dropping the rent prices for these particular properties in order to fill them.

“You used to be able to get $500 [for these properties], now it’s $400 per week,” she said.

As well as job losses, short-term rental cancellations were also causing a boost in the number of available rentals in the area.

Despite the spike in listings, Ms Russell said the properties were being rented as quickly as they were listed, snapped up either by expats moving back to Australia to be close to family or medical professionals needing to self-isolate.

“We’re still able to do the one-on-one inspections so people are looking,” Ms Russell said.

In NSW, rental listings in some regions have absolutely spiralled, with inner Sydney seeing 163 per cent more available rentals compared to the same time last year.

The eastern suburbs, including Bondi, saw a massive lift of 61 per cent over the same time period. 

“There are lots of places there that are Airbnb friendly,” Mr Wilshire said.

It was a similar story in other states. In Victoria, inner Melbourne’s Stonnington, including South Yarra and Prahran, led the way with rentals leaping by 81 per cent since the same time last year and the inner city jumping by 79 per cent.

Elsewhere in Queensland, Cairns’ listings were up 55 per cent compared to the same time last year while Gold Coast rentals were up 31 per cent.

The only capital whose numbers were down over the year was Canberra where listing numbers dropped by 9 per cent. However, compared to just four weeks ago, rental listing numbers are up by 29 per cent revealing a short-term spike. 

The Agency head of property management Maria Carlino said there had been a lot of movement in the market since coronavirus restrictions were put in place.

Forced closures of hospitality, retail and entertainment businesses, among others, had seen many people lose their jobs and their ability to pay rent.

“There are probably a couple of factors having an effect,” Ms Carlino said.

“We had overseas renters who have just absconded back home and left the property vacant.

“There are some tenants renegotiating the rent to ease the pressure and Airbnb owners are considering listing their properties on a full-time basis.

“We also have had some cases where owners have taken their properties off the market for a short time and had siblings [family] move in. 

“One has a daughter who works at the hospital and needs to be closer to the hospital and to self-isolate from her family.”

“Coronavirus has really affected everyone,” she added.

Meanwhile in Melbourne, the prestige rental market was seeing a change in pace, with landlords and tenants still keen to move quickly under the circumstances.

Marshall White business development manager Amanda Smith said rental inquiries at the top end of the market were slowing as the coronavirus saw people more confined to their homes.

“We’ve had a 45 per cent drop of prospective tenant inquiries but the people who are inquiring are ready to go,” Ms Smith said.

“They are out there looking and there is going to be some more choice now.”