Australia’s Real Estate: New Listings Surge and the Emergence of Bond-Free Rentals - Property Inc

Australia’s Real Estate: New Listings Surge and the Emergence of Bond-Free Rentals

Australia’s property landscape has witnessed noteworthy developments recently. Not only has there been a surge in new real estate listings, but there’s also a wave of innovation sweeping through the rental market.

Property Listings Rising

According to PropTrack’s recent Listings Report, Australia saw a 4.5% annual increase in new listings on realestate.com.au for September 2023. Delving into the details, there was a notable 5.9% rise across capital cities and a 2.3% uplift in the regions.

Yet, despite this annual increase, there was a dip in new listings from August to September, falling by 7.1% nationally1. PropTrack economist and report author, Anne Flaherty, attributes this decline to factors such as school holidays and long weekends. She remarked, “After an unseasonably busy end to winter, the number of homes newly listed for sale dipped slightly in September compared to August”1. Nevertheless, Flaherty remains optimistic about the overall landscape, stating, “An improvement in seller sentiment is a key driver behind the annual rise in the number of new listings”.

Build-to-Rent Revolution

On the other end of the property spectrum, the Australian rental market is undergoing significant changes, spearheaded by the Build-to-Rent (BTR) movement. This involves constructing entire apartment communities designed exclusively for renters, emphasizing lifestyle and community building.

One of the game-changing offerings within the BTR sector is the bond-free lease, currently seen at Mirvac’s LIV apartments2. Renters can skip the typical bond process when renting these apartments. Angela Buckley, BTR sector lead at Mirvac, elaborated on the BTR objective, explaining it seeks to “bridge the gap between buying and renting in the Australian property market”.

However, the BTR model is about more than just skipping bond. It brings along benefits like flexible lease terms, the ability to personalize spaces, proactive maintenance, pet-friendly policies, and more. Many BTR buildings also offer enhanced amenities, including gyms, shared outdoor spaces, and communal working areas.

Beyond physical amenities, there’s a focus on fostering a genuine sense of community. As expressed by Essence Communities, which manages the Realm BTR brand, they aim to create a “genuine community with neighbors through events, a social calendar, and special interest groups” specifically designed for renters.

According to Colliers estimates, the BTR sector is expected to expand significantly, with approximately 50,000 apartments predicted to be built by 2030. Yet, amidst Australia’s rental crisis and a national rental vacancy rate of 1.06% in September, this figure only accounts for about 1% of the total rental supply. Robert Papaleo, Colliers’ Build-to-rent national director, noted the BTR sector’s consistent supply potential, stating it “has the potential to deliver supply more consistently through the peaks and troughs of property cycles”.

Looking Ahead

Despite the recent dips and rises, both the sales and rental property markets show promise. The uptick in listings signifies a recovering confidence among sellers, while the BTR wave offers innovative solutions for renters.

However, as Australia grapples with housing affordability and the need for diverse housing solutions, collaboration will be vital. As Ms. Buckley of Mirvac aptly puts it, “All levels of government need to work together, alongside industry and the community, on a coordinated plan and approach”.

References:

“Australian real estate market records 4.5% annual lift in new listings for September 2023”, Henry Thai. https://thepropertytribune.com.au/market-insights/australian-real-estate-market-records-4-5-annual-lift-in-new-listings-for-september-2023/ 

“The bond-free rental: how Build-to-rent is shaking up Australia’s rental market”, Benn Dorrington. https://www.realestate.com.au/news/the-bond-free-rental-how-build-to-rent-is-shaking-up-australias-rental-market/ 

Recommend0 recommendationsPublished in Property News

Related Articles

Responses