7. Ray White Now | JULY 2021 | Page 13

9 . Rental market recovery
The market that was most adversely impacted by COVID was the rental market . While prices were hit a little in the early months of the pandemic , growth began again fairly quickly . Meanwhile , rental declines were far more sustained . Nevertheless , the rental market has recovered in most parts of Australia , driven by better economic conditions and increasing wealth .
The areas that are seeing the strongest rebound are Darwin and Perth , both cities are heavily dependent on mining conditions which are booming .
Canberra has also done well off the back of big increases in government employment .
In sharp comparison are the apartment markets of Melbourne and Sydney . Overall , both of these areas are seeing declines in rents even though rents for houses are increasing . A high level of dependence on foreign students and lots of new apartments in recent years have contributed to this . Interestingly , although rents have dropped by almost 30 per cent in Melbourne CBD , one of the most impacted markets , prices have remained stable .
CAPTIAL CITY RENTAL GROWTH 12 months to May 2021
25.0 %
20.0 %
15.0 %
10.0 %
5.0 %
0.0 %
-5.0%
Darwin
Perth
Australian
Capital Territory
Brisbane Hobart Adelaide
Sydney
Melbourne
-10.0 %
Source : Corelogic , Ray White HOUSE
UNIT
REGIONAL AUSTRALIA RENTAL GROWTH 12 months to May 2021
16.0 % 14.0 % 12.0 % 10.0 % 8.0 % 6.0 % 4.0 % 2.0 % 0.0 % -2.0% -4.0%
Regional WA Regional Qld Regional Tas . Regional NSW Regional SA Regional Vic .
Regional NT
Source : Corelogic , Ray White HOUSE
UNIT
13