4 ms·

Rents fell during the pandemic in Australia.

• tmnvix 3y ago
  I noticed that at the time. As an aside, I'm quite shocked by what has happened to the property market in Australia since (particularly Sydney). It stands in stark contrast to NZ. I'm pretty confident that it won't continue this way for too much longer. A recent new report suggested the majority of recent sales in Sydney were to cash buyers. How long can that last? The higher rates will eventually have an effect.
  • donavanm 3y ago
    Im in Sydney as well. I suspect the immediate effect of rates shook out in Q2/Q3 last year when there was a big dip. Since Q4 inner west-ish prices are up another 10% for properties Im tracking. Clearance rates are still around 70%, though I see a fair number withdrawn beforehand instead of passed in. > new report suggested the majority of recent sales in Sydney were to cash buyers. How long can that last? A long long while. Every existing owner, 60% of the population, is at the top of the pyramid scheme. Anecdotally from agents and my observation is the ones selling an existing proprry are cashing out, doing a price insensitive downsize, and/or buying a “first home” for family members. More pressure on the middle market. Similarly our net new residences and net inward migration is still insane. Something like 40k residences and 500k new people. Interest at a historical norm of 7% isnt going to do anything in light of that. Especially with good odds on RBA decrease this year or next. Extends to the rental market as well. Minus the inner city covid pause rents are also tracking 10% or higher gains year after year. So yes tax insanity, finance, and “investment” memes have cooked us. But I dont see anything getting materially better in light of that supply and demand.