Connect with us

Rental

Council sees long-term rental as solution to regional worker shortages

council

A council in Victoria’s alpine region is urging ratepayers not to list their properties on short-stay sites and instead rent them out long-term to help plug a major shortage of key workers.

A shortage of affordable long-term rental properties is contributing to an acute under-supply of workers across a range of industries, including hospitality, healthcare and education.

Restaurants and cafes in towns popular with holidaymakers across the state have been forced to cut their trading hours because they cannot find enough employees to remain open all week, despite an increase in visitors.

More owners listing properties on holiday rental sites, the rising trend of people leaving Melbourne for regional Victoria and the increasing tendency for young people to remain in country towns have all contributed to the housing shortfall.

In a bid to address the problem as the busy summer period approaches, the Alpine Shire wrote to all landowners this month asking them to consider long-term tenants and make the switch from short-term sites such as Airbnb or Stayz.

“We strongly encourage anyone considering their property options to make contact with council”, Alpine Shire mayor Sarah Nicholas said. “Your property could become a much-needed home for a vital key worker.”

Cr Nicholas said a “handful” of property owners had so far contacted the council about letting their homes as part of the program.

Figures supplied by the shire showed the cost of renting rose 14 per cent in the year to April in Bright, while median house prices increased by 24 per cent between 2019 and 2020.

From 2014 to 2020 median house prices in the town soared from $330,000 to $715,000.

Bright’s population grew by 1.3 per cent in the year to 2020. But by April the number of long-term let properties had fallen by 6 per cent on the year before, with some changing over to the short-term market.

Holiday accommodation is scarce in the region over the summer holiday period, but some apartments are attracting prices of $1000 a night during the peak.

However, Cr Nicholas said there were benefits to long-term rentals, including fewer costs for cleaning, marketing and furnishing.

“The income difference between short-term and long-term accommodation may be less than people think,” she said.

In a Facebook video posted by the council last month, Bright P12 College assistant principal Scott Burton said he was evicted from his rental property, and it took almost 80 days to find a new home.

Bright Brewery owner Scott Brandon said he had been able to retain workers because over the years he had worked to increase his proportion of permanent staff.

But he said it was clear other businesses were struggling to attract enough staff, with many forced to reduce their hours, particularly midweek, and some of those customers flowed over to the brewery due to the lack of options in the town.

“They might be open five days a week, but tourism is a seven-day-a-week business,” he said.

A state government spokeswoman said $5 million was being invested in new pilot programs to help tackle the housing shortages in regional Victoria.

“Locations include the high country, where the popularity of the region for both tree-changers and domestic tourism is leading to accommodation shortages,” she said.

“New planning provisions for rural worker accommodation are making it easier for farmers to provide suitable accommodation to secure the workforce they need.”

Rural Councils Victoria deputy chair Jenny O’Connor said the housing shortage was a complicated problem because councils wanted to encourage tourism to stimulate their economies, but it was contributing to the shortage of workers required to serve holidaymakers.

“It’s a wicked problem. There’s no easy solution,” she said. “As communities we want permanent residents as well as tourists.”

 

Article Source: www.brisbanetimes.com.au

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Real Estate

Record Weekend Auctions Levels Spurred by Buyer Demand

Weekend Auctions

Auction levels hit record highs during the weekend while property prices rose for the 14th consecutive month despite expectations the property sector would wind down more drastically.

In the past 12 months, median dwelling prices have increased $126,700, or $2437 a week, according to Corelogic’s results for November.

The home value index recorded a 1.3 per cent rise, the softest rise since the market’s cyclical peak in the rate of growth in March at 2.8 per cent.

Based on median values, capital city houses were now 37.9 per cent more expensive than capital city units, the largest difference on record.

Meanwhile, auctions reached a record high with 4261 homes under the hammer at a clearance rate of 71.4 per cent, exceeding the previous high of 3990 in March 2018.

Melbourne had the lion’s share of auctions— 1891—while the usually quiet Canberra, Adelaide and Brisbane markets continued to pick up pace.

Brisbane recorded the highest home value growth for November, 2.9 per cent, the state’s highest since October 2003.

Adelaide recorded its highest growth rate since February 1993.

Perth nudged into positive territory rising 0.2 per cent, after prices decreased last month while Darwin prices dropped 0.4 per cent.

Auction volume and change in home values

Location Month Quarter Annual Auction Volume, week to 28 Nov
Sydney 0.9% 4.3% 25.8% 1577
Melbourne 0.6% 2.4% 16.3% 1891
Brisbane 2.9% 7.4% 25.1% 256
Adelaide 2.5% 6.5% 21.4% 299 (record)
Perth 0.2% 0.4% 14.5% 52
Darwin -0.4% 0.2% 16.7%
Canberra 1.1% 5.0% 24.5% 184 (record)
Hobart 1.1% 5.5% 27.7% 2
Capitals 1.1% 4.0% 21.3%
Regional 2.2% 5.9% 25.2%
National 1.3% 4.4% 22.2% 4261 (record)

^Source: Corelogic Hedonic Home Value Index, November 2021

Corelogic research director Tim Lawless said the capital city trends were showing greater diversity with conditions across Sydney and Melbourne slowing sharply compared to smaller cities.

“Relative to the larger cities, housing affordability is less pressing, there have been fewer disruptions from Covid lockdowns and a positive rate of interstate migration is fuelling housing demand,” Mr Lawless said.

“On the other hand, Sydney and Melbourne have seen demand more heavily impacted from affordability pressures and negative migration from both an interstate and overseas perspective.”

Despite this, Melbourne recorded its highest number of auctions since March when 1899 homes went under the hammer.

The majority of listings were in the less than 20km from the CBD with Reservoir, Coburg, Glen Waverley and Richmond recording the highest volumes.

REIV president Adam Docking said the strong numbers were welcomed by home buyers.

“An increase in property supply over the next few weeks is good news for buyers, following a long period with fewer listings, but sustained demand has, in many instances, played a role in lifting prices,” Docking said.

Victoria’s auctions were 35 per cent in the CBD, 43 per cent in middle Melbourne, 17 per cent in the outer suburbs and 5 per cent in regional areas.

 

Article Source: www.theurbandeveloper.com

Continue Reading

Rental

Regional Rent Price Surge Biggest on Record

Regional Rent Price

Australian rents have increased 8.9 per cent year-on-year during the past 12 months, the fastest pace of growth since 2008, while Darwin recorded price rises in excess of 20 per cent.

Regional rents experienced greater growth than their city counterparts in the September quarter, recording an average 2.2 per cent rise, while capital cities increased 1.7 per cent.

Darwin rents grew 20 per cent over the past 12 months, while Brisbane, Perth and Adelaide all recorded strong price growth.

Corelogic research director Tim Lawless said the strong demand for detached housing a lack of supply due to historically low levels of investor activity during the pandemic had driven rental prices higher.

“Renters are clearly looking for lower density housing options, with house rents rising at more than double the pace of units rents over the past year, however this trend is starting to narrow,” Lawless said.

Capital city rent prices 

City Median rent YoY change Yield
Sydney $595 7.2% 2.45%
Melbourne $450 1.8% 2.76%
Brisbane $491 9.7% 3.93%
Adelaide $440 8.3% 4.06%
Perth $478 14.5% 4.33%
Hobart $507 12.8% 3.89%
Darwin $561 20.9% 6.17%
Canberra $663 9.6% 3.92%

^Source: Corelogic Quarterly Rental Review

Corelogic research director Tim Lawless said the strong demand for detached housing a lack of supply due to historically low levels of investor activity during the pandemic had driven rental prices higher.

“Renters are clearly looking for lower density housing options, with house rents rising at more than double the pace of units rents over the past year, however this trend is starting to narrow,” Lawless said.

“National house and unit rents [were] rising at the same rate over the September quarter at 1.9 per cent.”

“Another factor that may be contributing to rental demand is that more renters are working from home, which could be driving a trend towards smaller rental households as tenants look to maximise their space and working environment during Covid.”

Migration to regional areas has led to a boom in rent prices with regional rents rising 2.2 per cent over the September quarter and 12.5 per cent over the past 12 months, the highest increase ever recorded (since records began in 2005).

“Demographic data is showing a clear trend towards regional population growth, driven by a combination of more people leaving cities for the regions, but also fewer people moving from the regional areas to the capitals,” Lawless said.

“With regional housing rents rising 12.5 per cent over the past year at a time when household incomes have hardly budged, it’s likely that rental affordability is becoming a lot more challenging in some of the most popular regional markets.”

Adelaide remains Australia’s most affordable city to rent at $440 per week, while lockdown-ravaged Melbourne came in as the second most affordable with an average rent of $450 per week.

The skyrocketing value of properties against a backdrop of lower rent increases has led to a drop in gross yields from 3.77 per cent to 3.29 per cent in the past 12 months.

Darwin has the country’s highest gross rental yield at 6.17 per cent, followed by Perth at 4.33 per cent, Adelaide 4.06 per cent, Brisbane 3.93 per cent, Canberra 3.92 per cent and Hobart at 3.89 per cent.

Sydney (2.45 per cent) and Melbourne (2.76 per cent) have the lowest gross rental yields.

Although rental growth has eased quarter-on-quarter, Lawless said expected rents would rise nationally for the “foreseeable future” and rental affordability could become an issue.

“Data to March shows renters were spending an average of 28.7 per cent of their household income on rental payments, which is slightly above the decade average of 28.1 per cent,” he said.

“Rental affordability has deteriorated further from there, which is likely to see more renters looking towards higher density rental options where renting tends to be more affordable.”

 

Article Source: www.theurbandeveloper.com

Continue Reading

Brisbane

Investors eye rental rises as house and apartment rents jump 1.9% in September quarter: CoreLogic

Rental 1

Both house and unit rents rose at the same rate – 1.9% – over the September quarter, according to CoreLogic’s quarterly Rental Review.

The national rental index increased 1.9% during the September quarter compared to a 2.1% rise in the June quarter.

National rental rates are 8.9% higher year-on-year, the highest annual growth in dwelling rents since July 2008.

CoreLogic’s research director Tim Lawless said a desire for detached housing remained strong, but suggested further rental affordability deterioration was likely to see more renters looking towards higher density rental options.

“Renters are clearly looking for lower density housing options, with house rents rising at more than double the pace of units rents over the past year, however this trend is starting to narrow, with national house and unit rents rising at the same rate over the September quarter (1.9%),” Mr Lawless said.

“Another factor that may be contributing to rental demand is that more renters are working from home, which could be driving a trend towards smaller rental households as tenants look to maximise their space and working environment during COVID.”

Mr Lawless noted the proportion of investors entering the market had begun to increase with investors accounting for 31% of mortgage demand in August.

Regional dwelling rents rose 2.2% over the September quarter compared to capital city dwelling rents, which increased 1.7% over the same period.

Regional Australia’s annual rate of rental growth of 12.5% in September 2021 is the highest annual figure on record, with CoreLogic rental index figures commencing in 2005.

The combined capital cities recorded annual rental growth of 7.5% over the same period, the highest annual growth rate for the combined capitals since January 2009.

The strongest quarterly rental growth was recorded in Brisbane (2.6%) and Sydney (2.3%), while Perth, which recorded a surge in rental growth earlier in 2021, saw rates increase 0.3% during the September quarter.

Trellis

Trellis 20 Edmondstone Street, South Brisbane QLD 4101

Adelaide remains Australia’s cheapest capital city for rentals, with typical dwelling rents of $440p/w compared to Canberra’s rates, which are the most expensive in the country at $633p/w. Melbourne, is Australia’s second more affordable rental market, with a typical dwelling costing $450p/w to rent, or just $9.30 a week more than it costs to rent in Adelaide.

“Relative to household incomes, based on data to March, Melbourne was actually the most affordable capital city to rent, with households, on average, dedicating 26% of their gross annual household income to rent a dwelling compared with the national average of 28.7%,” Mr Lawless said.

“With Melbourne showing the largest exposure to overseas migration, at least historically, once international borders open we could see a more substantial boost to rental demand than other cities. If this is the case, we could see Melbourne once again recording a faster rate of rental growth.”

National gross rental yields have fallen 48 basis points from 3.77% to 3.29% nationally in the past 12 months.

Darwin has the country’s highest gross rental yield at 6.17%, followed by Perth (4.33%), Adelaide (4.06%), Brisbane (3.93%), Canberra (3.92%) and Hobart (3.89%). Sydney (2.45%) and Melbourne (2.76%) have the lowest gross rental yields.

“Data to March shows renters were spending an average of 28.7% of their household income on rental payments, which is slightly above the decade average of 28.1%,”Lawless said.

“Rental affordability has deteriorated further from there, which is likely to see more renters looking towards higher density rental options where renting tends to be more affordable.”

For the first time CoreLogic’s Rental Review includes a list of the top 30 most expensive and affordable rental suburbs for each capital city as well as all key rent and yield statistics.  (1.9%),” Mr Lawless said.

“Another factor that may be contributing to rental demand is that more renters are working from home, which could be driving a trend towards smaller rental households as tenants look to maximise their space and working environment during COVID.”

Mr Lawless said private sector investors are the largest contributor of rental housing and up until January 2021 made up 23% of housing market activity. The proportion of investors entering the market has begun to increase with this buyer segment accounting for 31% of mortgage demand in August.

Regional dwelling rents rose 2.2% over the September quarter compared to capital city dwelling rents, which increased 1.7% over the same period. Regional Australia’s annual rate of rental growth of 12.5% in September 2021 is the highest annual figure on record, with CoreLogic rental index figures commencing in 2005.

In comparison, the combined capital cities recorded annual rental growth of 7.5% over the same period, the highest annual growth rate for the combined capitals since January 2009.

“Demographic data is showing a clear trend towards regional population growth, driven by a combination of more people leaving cities for the regions, but also fewer people moving from the regional areas to the capitals,” he said.

“With regional housing rents rising 12.5% over the past year at a time when household incomes have hardly budged, it’s likely that rental affordability is becoming a lot more challenging in some of the most popular regional markets.”

The strongest quarterly rental growth was recorded in Brisbane (2.6%) and Sydney (2.3%), while Perth, which recorded a surge in rental growth earlier in 2021, saw rates increase 0.3% during the September quarter.

Adelaide remains Australia’s cheapest capital city for rentals, with typical dwelling rents of $440p/w compared to Canberra’s rates, which are the most expensive in the country at $633p/w. Melbourne, is Australia’s second more affordable rental market, with a typical dwelling costing $450p/w to rent, or just $9.30 a week more than it costs to rent in Adelaide.

“Relative to household incomes, based on data to March, Melbourne was actually the most affordable capital city to rent, with households, on average, dedicating 26% of their gross annual household income to rent a dwelling compared with the national average of 28.7%,” Mr Lawless said.

“With Melbourne showing the largest exposure to overseas migration, at least historically, once international borders open we could see a more substantial boost to rental demand than other cities. If this is the case, we could see Melbourne once again recording a faster rate of rental growth.”

Despite rising rental prices in the three months to September, dwelling values increased 4.8% in the same period, resulting in declining gross rental yields, a trend that has continued on a monthly basis over the past year. Gross rental yields have fallen 48 basis points from 3.77% to 3.29% nationally in the past 12 months.

Darwin has the country’s highest gross rental yield at 6.17%, followed by Perth (4.33%), Adelaide (4.06%), Brisbane (3.93%), Canberra (3.92%) and Hobart (3.89%). Sydney (2.45%) and Melbourne (2.76%) have the lowest gross rental yields.

Although rental growth has eased quarter on quarter, Mr Lawless expects rents nationally to rise for the foreseeable future but with little increase in household incomes rental affordability will eventually become an issue.

“Data to March shows renters were spending an average of 28.7% of their household income on rental payments, which is slightly above the decade average of 28.1%,” he said.

“Rental affordability has deteriorated further from there, which is likely to see more renters looking towards higher density rental options where renting tends to be more affordable.”

 

Article Source: www.urban.com.au

Continue Reading

Positive Cashflow Property

duplex designs, dual occupancy homes

Property Investment Advice

gold coast property management

Trending