Rents, especially in Australia’s capital cities, are falling, with home rentals down 2.4 per cent and units down 1.1 per cent.
Rental prices for houses in Sydney dropped 5 per cent, Hobart 4.2 per cent and Melbourne saw rents drop by 2.6 per cent.
A two-bedroomed unit across the road from Bondi’s famous beach front has been cut from $920 a week to $650. And in Manly, a two-bedroom, two-bathroom unit with parking is reduced by $300 a week to $500 for the first six months.
In Camperdown in Sydney’s west, a two-bedroom apartment on Parramatta Road haas been reduced from $750 to $650 for the first six months.
Western Sydney suburbs have not seen a significant drop in prices, with rents still averaging around $300 a week in places like St Mary’s and Penrith.
Domain’s economist Trent Wiltshire said that people are relinquishing their properties due to their changing circumstances of the coronavirus crisis.
“People who have lost jobs or income are trying to save money so are moving back in with parents, moving in with friends, dissolving share houses,” he said.
According to the ABC, Realestate.com.au says rental listings on its platform were up 8 per cent across the country, compared to the same time last year and states like New South Wales, Victoria and Tasmania.
Domain Group saw a 10 per cent rise nationally between March 30 and April 26, compared to a year ago, with Sydney and Melbourne listings up 19 per cent and Hobart listings up 24 per cent, while listings in Perth fell 10 per cent.
The SQM Research also expects a surplus of about 100,000 dwellings this year, leading to a doubling of rental vacancies nationally.
Another source of rental properties that are hitting the market, include holiday rentals that were being leased through Airbnb.
Some of the hot spots include places like Bondi, Surfers Paradise in Queensland and Byron Bay in Northern NSW, which are popular holiday destinations.
Domain has seen rental listings surge in some holiday hotspots, with 73 per cent more new listings in Bondi Beach over the past month compared to the same period last year, a 123 per cent increase in Byron Bay and 171 per cent rise in Surfers Paradise.
And Mr Wiltshire said that it is only the start. He believes that we will see higher vacancy rates and more discounting on rents as a result of the decimated holiday market.
“It’s likely that rents will fall in coming months, particularly in those areas that had lots of Airbnbs,” he said.
Aside from the coastal spots, capitals including Sydney, Melbourne and Perth will also see a dramatic increase in vacancies.