Sydney apartment rents fell by 2 per cent over the same period,while house rents rose as people looked for bigger properties during lockdown.
More tenants will return to cities like Melbourne as international borders have reopened.Credit:Joe Armao
Both markets rely on overseas migration to help fill rentals,including international students who were kept out of the market because of the COVID-19 pandemic.
Unlike Sydney and Melbourne,Queensland saw an influx of new tenants and new buyers,moving away from lockdowns in both cities.
Mr Koutsamanis said some investors were still looking at buying in Queensland,where the vacancy rate has dropped below 1 per cent and is just 0.5 per cent on the Sunshine Coast,according to SQM Research.
A rise in tenant numbers is now predicted in Sydney and Melbourne as international borders reopen to overseas students,workers and tourists,providing opportunities for investors across the country,Sydney-based Aus Property managing director Lloyd Edge said.
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“With the international borders reopening,there is opportunity for more growth,with students returning at the moment. I think the properties in the city might start to come back,” Mr Edge said.
Demand for Airbnbs could also return,offering investors a way back into the short-stay rental market,Mr Edge added.
While rents may improve slightly with borders reopening,they would stay lower until migration returns to normal levels and investors would need to think about the long term,keeping properties for at least 10 years,said Melbourne-based buyers agent Wendy Chamberlain.
“Over time,real estate is a forgiving investment,so investors do need to look to the long term. They need to buy assets that can weather the storm rather than be hard hit,like student accommodation.”
Ms Chamberlain said looking further out of the city,and in regional areas,where investors could buy a bigger property with their money would help attract tenants looking for more space.
Tenants have flocked to Queensland to escape lockdowns.Credit:Domain
“I think the market will tick along quite nicely through 2022,but I think prices will hold steady,we won’t have the type of boom we had this year.”
Outgoing Real Estate Institute of Australia president Adrian Kelly said a balance of supply and demand,with more homes coming up for sale across the country,should see more opportunities for investors open up.
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The number of homes for sale was down between 20 per cent and 40 per cent depending on the city,with people holding off listing during the year because of lockdowns.
“What we’re hoping to see is the supply and demand start to become balanced,” Mr Kelly said.
“We’re hoping a lot of people who sat on their hands during the pandemic will list and that will free up houses for investors and first-home buyers.”