Leah Calnan’s insights: What can we expect from the rental market in 2022?
Melbourne and its regional surrounds experienced a year like no other in 2021. The impact of lockdowns on lifestyles, places of work and convenience of living shifted the rental market dramatically. Vacancy rates were high and potential renters were met with an array of options when browsing for potential properties. But will we see a swing back towards a busier rental market in 2022? Read on for Metro Property Management Director, Leah Calnan’s expert insights.
The rental market saw a 20% reduction of new listings coming to market in 2021
This indicated a slow rental market in 2021, possibly due to lack of movement due to lockdowns, investors holding off on purchasing in Melbourne and many other possibilities. This also sets us up for a bumper 2022 as investors and home owners reconsider listing their properties for rent to take advantage of the growing need for Melbourne rentals.
Expect to see strong rental growth return in the larger capital cities in 2022
With international borders open, return-to-work in full swing and cities returning to their former vibrant selves, we should expect to see more people looking to relocate to capital cities this year. It may feel like a slow start, but as the momentum picks up following major events like the Australian Open, we are sure to see increased occupants in Melbourne and cities of similar size.
It’s important here to note that we may see a delay in market uplift around apartments in the CBD and around educational institutions, as we see a slower move to in-person learning and CBD offices.
At the end of 2021 we saw an average of 27 days on market across Melbourne’s rental market
This is a hopeful sign for things to come. Already at the end of 2021 we were seeing shorter vacancy time periods – getting renters into properties quicker. This will continue to decrease throughout 2022 as demand increases.
A supply shortage is expected in the rental market across Melbourne throughout 2022
Melbourne’s rental supply shortage will see an uplift in rental prices and shorter vacancy periods throughout 2022, a welcome change for investors after a difficult 2021.
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