'Now is the time to find a bargain': 1 in 3 renters are moving or thinking about it as Australia's property market gets a shakeup
by Jack Derwin
- More than 30% of tenants have moved or are considering moving as the Australian rental market gets a shakeup, according to a Finder survey.
- As asking rents fall more than 3% nationwide, tenants that move or negotiate are in line to save more than $3,600.
- The pandemic has pushed a glut of rentals back onto the market while also restricting the number of would-be tenants.
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As rental prices fall in most capital cities, there’s a lot of tenants who are getting itchy feet.
Around one in three to be more precise, according to the latest Finder survey, which found 31% had either moved or were considering packing up.
Their motivation is clear. Tenants stand to save an average of $3,640 a year by shopping around at the moment, based on analysis of data from SQM Research data.
“The reality is many Aussies are currently paying too much for their rent. If you’re in a position to move, now is the time to find a bargain,” insights manager Graham Cooke said.
It comes as the pandemic gives Australian rental markets their biggest shakeup in years, flipping market dynamics into reverse.
As the flow of international students, visitors and immigrants into the country dries up, a glut of new rentals and Airbnbs have made their way back onto the market with few people left to snap them up.
Meanwhile, some local renters – who disproportionately work in hard-hit sectors like hospitality – have chosen to exit the market, returning home to live with parents in the interim.
Throw in a ‘mass exodus’ from inner-city areas, and renters in expensive cities like Sydney are for the first time in years spoilt for choice.
Across Australia, median rents fell 3.75% in April and May. In Sydney and Melbourne, rents have fallen by more than 6%, while Hobart and Brisbane have dropped by 4%.
Of course, as landlords are forced to grow accustomed with this brave new world, renters don’t necessarily have to move to get a better deal.
“If moving isn’t an option consider asking for a rent reduction. Compare what similar properties in your area are going for and negotiate with your landlord on a rental price that more accurately reflects market rate,” Cooke said.
For some, that’ll mean the first discount in years.