Pandemonium in the rental market

Ian Rogers

Rents are cratering in Melbourne and Sydney. There are no more international students, or hardly any.

There is no tourism.

China may be stockpiling iron ore, coking coal and precious, specialist metals for the world war they soon wage and win, but the short and long term housing and banking crises are the wars the industry needs to work on.

The plunge in rental values in Melbourne has to be worse than 10 per cent by now.

The inducements and discounts and rent holidays are everywhere. Thus reported rents, whether CoreLogic, REIV or REINSW of ABS; hold a few doubts.

There’s a lot of stock and there’s a lot of demand.

Lots and lots of demand for budget rentals and still rents are falling.

When renters are stressed and underemployment is common, credit impairments around banking have to take off.