MCG Quantity Surveyors’ latest data reveals an acute shortage in rental listings across Australia, significantly impacting renters, especially during the holiday season, while simultaneously presenting investment opportunities.
According to Mike Mortlock, Managing Director of MCG Quantity Surveyors, “The December data paints a stark picture for the Australian rental market. In areas like Greater Sydney and Regional NSW, we’re seeing a significant crunch in available rentals, putting immense pressure on renters.”
The data indicates severe shortages in specific regions. In Greater Sydney, areas like Sutherland – Menai – Heathcote (2225) reported only one rental listing, despite having a substantial number of private rentals. This trend is mirrored in regions like Clarence Valley (2466) and Armidale (2365) in Regional NSW, where the rental market is similarly constrained.
“Regions like Greater Melbourne and Greater Brisbane, which traditionally have robust rental markets, are showing an alarming decrease in rental listings,” Mortlock notes. “This scarcity, though a hardship for renters, presents a unique opportunity for investors, especially with the potential shift in interest rates in 2024.”
In Melbourne, places like the Yarra Ranges (3158) and in Brisbane, areas such as Ipswich Hinterland (4310), are experiencing significant rental shortages. This pattern extends to Regional VIC and Regional QLD, highlighting a nationwide issue.
Mortlock adds, “Our analysis reveals that while renters in areas such as Regional VIC and Regional QLD are facing tough times, investors could play a key role in easing these pressures. By entering these markets, investors can help increase the availability of rental properties, creating a win-win situation for both the rental community and themselves.”
This situation presents an opportune moment for investors to contribute positively to the market, not only for financial gains but also to improve rental availability in under-served areas. The improvement in rental yields and the potential for stable or declining interest rates in 2024 make these markets particularly attractive for investment.
MCG Quantity Surveyors calls for a balanced approach to the housing market, considering both the immediate needs of renters and the long-term potential for investors. Addressing these dual aspects will be key to the health and sustainability of the Australian rental market in the coming year.
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