As coronavirus continues to cause chaos to property markets across the world, in Australia, the rental market is being affected most in its largest cities.
Financial aid packages introduced for those struggling with job losses or reduction in hours, such as Jobkeepers, aimed at helping those who are having difficulty with paying their rent.
However, in Sydney and Melbourne, where there are higher numbers of non-Australian nationals who don’t qualify for government aid, the rental market is experiencing more difficulty.
Speaking on ABC Radio Brisbane, real estate expert Kieran Clair said: “Sydney and Melbourne have a higher number of overseas students for example, who can’t apply for the Jobkeepers or Jobseekers, and they’re the ones suffering at the moment.”
Clair went on to describe how the rental market in Queensland is yet to feel the effects of Covid 19 as some of the country’s biggest cities.
“I have spoken to some property managers who have said that they have only had %1.5 of their total tenancy book seeking rent relief, however, that number is slowly rising,” Clair said.
It is thought that Queensland’s lower rental rates also mean those who do apply for financial help, have an easier time keeping up with their rental payments.
“Apart from having crackerjack weather and less density up here in Brisbane, on average the rent is lower than down in Sydney and Melbourne, so people can make their way through this pretty handily up here,” he said.
Recent research conducted by Domain supports Clair’s claims that the impact on the rental market is being felt more in the country’s southern cities.
Data shows the vacancy rate rose sharply in Sydney, Melbourne, and Canberra in comparison with cities Brisbane, Perth, and Darwin.