Horror queues of hopefuls stretching around the block, rents at record levels and frustrated applicants wondering what it’ll take to sign on the dotted line.
Liza Ajredini, a leasing manager with Melbourne property firm Jellis Craig, and veteran of two decades in the industry, said the market was as tough as she’d ever seen it.
Speaking to 9news.com.au after finishing a frenetic viewing for a one-bedroom unit in Moonee Ponds, where close to 100 prospective tenants showed up, Ajredini was in no doubt: “The rental market has never been tighter.”
“The competition is insane at the moment,” she said.
“We always traditionally see the peak of the market in January to March, but this year is even worse than ever.”
Ajredini said she had seen many landlords forced to sell their rental properties over the last year as the Reserve Bank hiked interest rates and borrowing costs radically jumped, “which means demand for rentals has never been higher”.
Would-be tenants face huge challenges, Ajredini said, as she offered advice on how to make an application stand out, and predicted the tough times would last until Easter.
“Queues are backed up streets away. People just queuing up, and people can’t believe what they’re seeing at inspections, the amount of people that are turning up.”
Showings for one-bedroom apartments were especially intense, she said.
“Anything $450 and under and we’re seeing huge numbers at inspections.”
Ajredini said it was difficult to continually be telling dozens and dozens of desperate people that their applications had been declined, such is the supply-demand imbalance.
An impeccable rental history was key to securing a tenancy, she said.
“I know a lot of people think that offering more rent will put them ahead of others but from my experience we look at the strength of the application itself.
“I recommend to renters to put all their rental history in there. And it’s most favorable for them if they’ve got a rental history through an agent which can be verified.
“The housing crisis has never been more apparent than it is presently.”
Ajredini’s view is backed by a PropTrack report released yesterday, which revealed rents nationally are up 11.5 per cent, or $60 per week, since December 2022.
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Rents in the capital cities surged 13.2 per cent compared to the same time a year ago, bringing them to $600, the report found.
Units in Sydney, Melbourne and Brisbane have seen particularly sharp increases in the past year, up 15 per cent to 17 per cent.
Perth had the fastest rent growth, reflecting its incredibly low rental vacancy rate, the second tightest behind Adelaide.
