Suburbtrends Proposes “Retirement” to Tackle Rental Crisis
As the rental market pressures intensify across Australia, Suburbtrends has unveiled a pioneering solution dubbed “rentirement.” This strategy encourages Australians aged 67 to 77 to release their homes into the rental market while they travel or retire overseas, potentially unlocking a significant number of properties to alleviate housing shortages. Potential impact on the rental market. Suburbtrends’ founder, Kent Lardner, highlighted the potential of this initiative. “Our data shows that over 137,000 homes could be released into the rental market if just 10% of the Rentirees cohort participated,” Lardner said. “This represents a substantial untapped resource that could drastically ease rental pressures.” You may read the whole article here:https://bit.ly/3yRuRsK
Strategies for Population Surge
The national rental vacancy rate increased by 0.08 percentage points to 1.3% in May, marking the highest rate since July 2023 and the first instance of three successive monthly improvements since late 2020. The latest PropTrack Market Insight Report showed improved rental vacancy rates in many areas, with Sydney recording a 0.16 percentage point increase in vacancy rates and the ACT experiencing a 0.18 percentage point rise last month. Perth recorded the largest increase over the past three months with a 0.40-percentage-point jump. Despite these increases, PropTrack noted that rental availability remains low across all markets, with only the ACT seeing a higher share of available rentals than before the pandemic. You may read the whole article here:https://bit.ly/3VaH0AC
Surge in Loan Approvals Driven by FHBs
New loan approvals are up almost 10 per cent since autumn 2023, signalling a revival of young buyer confidence. Data from the Australia Bureau of Statistics (ABS) has revealed that new loan commitments have seen a 9.9 per cent increase since March 2023. Surprisingly, given the extreme cost-of-living stress that many Australians are facing, young buyers may be experiencing a restoration of market optimism. Dan O’Loughlin, managing director of Barry Plant Pakenham, Drouin, and Berwick, said: “Confidence is definitely back in the market, particularly among first-time home buyers who are feeling more secure about their finances.” You may read the whole article here:https://bit.ly/3Riffor
NAB: International Investors Outpace Locals in New Vic Home Buys Early 2024
More foreign investors purchased a property in a new Victorian estate or development than local investors did in the first three months of 2024. And with a report from the nation’s third biggest bank also showing the share of first-home buyers tackling new builds across the state is the lowest in the country at 22 per cent, there are signs pressure is rising on the city’s most affordably-priced homes going under the hammer. The first NAB Residential Property Survey for 2024 found just 8.6 per cent of new home sales in the first three months of the year had been to investors, while 10 per cent had been to internationals. You may read the whole article here:https://bit.ly/4bJsiHz
Inflation Slightly Up In April
The monthly Consumer Price Index (CPI) indicator rose by 3.6% in the 12 months leading to April, a slight increase from the 3.5% recorded in March, ABS reported. Michelle Marquardt, ABS head of prices statistics, highlighted the main drivers of this rise. “Annual inflation increased to 3.6% this month, up from 3.5% in March,” Marquardt said. “Inflation has been relatively stable over the past five months, although this is the second month in a row where annual inflation has had a small increase.” You may read the whole article here:https://bit.ly/4bG53hB
Affordable Rentals in Australia Hit Record Lows
Affordable rental properties are becoming increasingly scarce across Australia, with the share of rentals available for under $400 a week dropping significantly over the past year. New data from PropTrack shows that in April, only 10.4% of rental properties nationwide were listed for less than $400 a week, compared to 15.5% in April 2023 and 43.2% at the start of the pandemic. In capital cities, the situation is more dire. Just 5.9% of rentals in these areas are below the $400-a-week mark, down from 10.6% a year ago. Sydney has now seen only 3.8% of its rental properties now costing less than $400 a week, declining from 22.7% in March 2020. Melbourne’s rental market has also tightened, with just 7% of rentals under $400, compared to 38.7% at the beginning of the pandemic. Brisbane follows a similar trend, with the share of affordable rentals dropping from 49.2% in March 2020 to just 7.8% in April 2024. You may read the whole article here:https://bit.ly/4aEUSbK
How Have Loan Rates Changed?
