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The rental squeeze

By johnboy - 12 December 2006 51

Our Brave Leader keeps pumping out media releases telling us that housing affordability is the best in the nation. The most recent on was just last week.

Meanwhile today’s Canberra Times is packed with anecdotes on the red hot rental market ruining peoples lives.

Apparently investors have left the market due to land tax, which begs the question? Who’s living in all those units?

And is this all a beat-up by the real estate industry trying to influence Government policy?

UPDATED: Our Brave Leader has put out a media release saying the whole thing is a put-up job by the real estate industry and anyway he’s got a steering group out looking for “factors promoting affordability that the ACT Government can influence”.

What’s Your opinion?

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51 Responses to
The rental squeeze
terubo 12:06 pm 12 Dec 06

That’s right, JB; which is why I posed the question.

shauno 11:58 am 12 Dec 06

Exactly why I want one in the city. I don’t like living out in the suburbs and I’m away all the time so I like the security of an apartment above ground level. And I’m not concerned about whether it will go up in value or not because I want it for a base in Canberra to use nothing more.

FC 11:58 am 12 Dec 06

ACT Housing owns heaps of the ones at Sky Plaza.

johnboy 11:58 am 12 Dec 06

well, that shift should be freeing up other resources…

rentboy 11:53 am 12 Dec 06

Um, owner-occupiers?

Just because investors are fleeing the scene doesn’t mean they aren’t being snapped up by others. Units are hot preperty among first-home buyers (and also empty-nesters), you know. Not everyone wants a house out in the suburbs

terubo 11:40 am 12 Dec 06

If investors have left the market due to land tax, then I want to know: who OWNS all those units?

shauno 11:40 am 12 Dec 06

Its interesting.

I’m in the market to buy an inner city apartment in the next few months. So have been keeping a close I on whats been happening. Ive seen a lot apartments remain un sold for many months at a time and a few on my watch list have come down in price.

I’m actually renting a serviced apartment in City Plaza this break for 3 weeks to see what they are like. Very handy stager distance from the pubs lol.

Canberra is not alone when it comes to expensive rents the inner city apartments in Brisbane command some high prices as well.

If the federal labour party gets in next year which I think under Rudd is a possibility they could announce some major changes to negative gearing laws in an attempt to bring back house prices. Which are very high in this country compared to the size of our land mass.

toriness 11:31 am 12 Dec 06

My real estate agent told me I could increase my rent on my investment unit. I said no thanks – personally I’d rather have the good tenant I have at the same rent even though the costs of paying for the unit have gone up. But the fact is that interest rates have gone up, and other costs of owning a property have all gone up as well, and do every year ie water&sewerage, rates, land tax etc. So it is not that amazing that rent has gone up.

johnboy 11:29 am 12 Dec 06

What makes an unscrupulous agent is the one who pockets a bung to recommend one tenant over another.

Sammy 11:28 am 12 Dec 06

if someone offers more than the going rate do you think they should turn it down

Indeed, this is just a market economy at work. Demand drives supply, and supply drives demand.

Jazz 11:25 am 12 Dec 06


what makes you think its the unscrupulous agent upping the rents. Firstly, arent they supposed to be working in the landlords interests? and secondly, if someone offers more than the going rate do you think they should turn it down?

Al 11:16 am 12 Dec 06

Oh to only be paying $1500 rent per month…

gaelhope 11:03 am 12 Dec 06

The $355 pw that I was asked for for a pokey 2.5br townhouse with the carpet in holes in Florey was outrageous.

Those kinds of rents are the equiv of mortgage payments, yet try and save a bean to buy yourself a place when you’re paying around $1500/month for rent.

Al 11:02 am 12 Dec 06

Fact is that it is desperate out there trying to secure a decent home to rent, and if I had some money I’d be building rental properties….
And it will be even worse in January when there is likely to be an further influx of people looking. Rolling up to any inspection of a property that’s been advertised on one of the websites, you are greeted with what looks like a shopping centre carpark, with dozens of people trying to secure the place/any place. Which leads to unscrupulous agents prompting people to bid up the rent.
Your best bet is to use the newspaper classifieds and look for something being done privately rather than on the web…

toriness 10:59 am 12 Dec 06

Really though, WHO IS LIVING IN ALL THESE NEW UNITS? I need to know!

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