The May budget was supposed to tighten the rental market: fewer investors, less rental supply, lower vacancy and higher rents. Five months on, the data is telling a different story. Australia’s average vacancy rate has climbed from close to 0.5% to 0.9% this year, and fewer than half of the 300+ SA3s analysed have seen rental growth speed up since the budget. So what’s really going on?
In this episode, Junge Ma, Senior Research Analyst at InvestorKit, reviews three months of post-budget data across vacancy rates, rental growth pace and rental yields. She compares Sydney, Melbourne and Canberra with the tighter smaller capitals, uses Brimbank and Darebin South to show how affordability is shaping rents, and explains why rising yields, now 3.9% across the capital cities and 4.5% in the regions, matter for both investors and renters.
Chapters:
0:00, Introduction: 5 Months After the Budget
1:32, Vacancy Rates Across the Capital Cities
3:20, Almost the Opposite of What We Expected in May
4:25, Why We Weren’t Necessarily Wrong: Timing and Other Forces
6:20, Rental Growth Pace Across Regions
8:50, Affordability: Comparing Two Greater Melbourne SA3s
10:40, Why No Single Factor Dominates All Markets
10:52, Rental Yields
13:07, The Three Key Findings
13:46, Why Timing Matters
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Disclaimer: The information provided in this podcast is general in nature and should not be considered as personal financial advice. The podcast host, guests, and contributors are not licensed financial advisors. Please seek professional financial advice that is tailored to your situation and circumstances before making any financial decisions.
