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Rents going down

By johnboy 11 July 2013 70

The ABC has the happy news that Canberra’s hideous rental market is finally coming down:

The latest report by Australian Property Monitors shows the median asking rent for units dropped nearly 5 per cent in the past three months, or $20, to $410 a week.

Over the year, rents fell nearly 7 per cent or $30 a week.

They are the highest falls of any state or territory capital city.

The average rent for houses dropped 1 per cent in the past three months, or $5, to $480 a week.

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Rents going down
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OLydia 8:15 pm 02 Sep 13

“Rents going down”. What a misleading heading. Rents are not actually going down – mine certainly isn’t. A better heading might be “Average rents not rising as quickly”. Also, bad form to extrapolate that rents are going up or down solely looking at the average over a particularly short period of time – ie three months.

I am on a month to month contract directly with landlord and the rent is reviewed whenever the landlord remembers to do so. Every time the rent has gone up and its likely to go up at the next review, whenever that may be. And I will pay the increase.

Why? If I don’t accept the increase and the landlord won’t accept the rent staying the same or (heaven forbid) actually decreasing, we will have to part company. I don’t want the disruption and headache of finding another place to live – moving house, changing contact details, moving to a part of town you don’t know as well, etc etc. Often long term renters will pay an extra $30-$40 per week to avoid that sort of pain.

Madam Cholet 6:20 pm 02 Sep 13

I had valuations on both of my properties in the last couple of weeks. One down on the Sapphire coast which had apparently moved 20k in the right direction in the space of 16 months, and the other my home in Canberra which apparently has gone down 10k in the same space of time. A bit painful to hear that, and of course we disputed it – but to no avail. Interestingly tho the two sets of valuations I had done came in the same for the coastal property and 20k difference for Canberra.

I thnk the Canberra market is a bit confused right now – at least judging by the range in sale prices in my street anyway.

Darkfalz 3:35 pm 02 Sep 13

Dilandach said :

Wonder how the market is going to react with the inevitable oncoming storm of coalition hack n’ slash.

Don’t expect miracles.

thebrownstreak69 2:10 pm 02 Sep 13

arescarti42 said :

thebrownstreak69 said :

Rents are probably going down because prices are going up.

http://www.abc.net.au/news/2013-09-02/house-prices-rise-by-half-of-one-per-cent-in-august/4928486

How exactly would rising nominal house prices cause rents to fall?

The reason rents are falling is because there’s a massive amount of supply.

House prices rise because more people are buying, leaving fewer people competing for the available pool of rentals.

There is not ‘a massive amount of supply’, it’s just that there’s more supply than, say, 2 years ago. The trouble is that a lot of the new supply is expensive mid-luxury apartments, which is not what a lot of people want.

The big question will be what happens with the election, and how the new government plans to implement changes. At this stage I think either side would cut the PS, and this will have flow on effects to Canberra house prices. The questions will be how, and how much.

arescarti42 1:39 pm 02 Sep 13

thebrownstreak69 said :

Rents are probably going down because prices are going up.

http://www.abc.net.au/news/2013-09-02/house-prices-rise-by-half-of-one-per-cent-in-august/4928486

How exactly would rising nominal house prices cause rents to fall?

The reason rents are falling is because there’s a massive amount of supply.

thebrownstreak69 1:20 pm 02 Sep 13
Dilandach 12:16 pm 02 Sep 13

Wonder how the market is going to react with the inevitable oncoming storm of coalition hack n’ slash.

Darkfalz 12:08 pm 02 Sep 13

Pretty sure I’m going to be slugged as soon as the 12 months period since my last one transpires. I’m losing money not buying at the moment but just not ready to do so yet.

Arrow 11:16 am 02 Sep 13

Latest updates on the rental situation in Canberra:

http://www.canberrahouseprices.com/act-rental-situation-continues-to-improve/

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