There’s no relief in sight for local renters, particularly those in Queensland, with new figures showing that almost 1 in 5 tenants were inspecting property from outside the state they live in last month.
Little Hinges have released their latest report outlining how buyers and renters are inspecting property, showcasing the number of people who are inspecting from outside the state, and the country.
The monthly report has previously focussed on sales data, but has expanded to include those digitally inspecting properties to rent.
Little Hinges CMO, Mike York, said “recent CoreLogic data has shown that rents are increasing at breakneck speed, the number of homes listed for rent in capital cities has hit record lows, and the vacancy rate is still tighter than it’s ever been.
“We’re seeing all of that reflected in our data, which shows that renters are flocking to the Sunshine and Gold Coasts over the major capital cities due to a lack of availability and high rent.”
Mr York said, “On the Sunshine Coast, a third of digital rental inspections are coming from outside the state, with the Gold Coast seeing about a quarter of rental inspections from interstate. Perth is also seeing around 1 in 5 rental inspections from outside WA.”
According to Jodie Stainton, Property Management Director of Harcourts Solutions, the number of interstate and international rental applications are increasing, and these tenants are willing to accept a rental property sight unseen, given the current rental market and low vacancy rates.
Ms Stainton said, “We’re continuing to see interstate and international interest on rental properties, and we’ve had to adapt to accommodate this influx.
“We’re now accepting tenants who have viewed properties only via a digital inspection,” she said.
PropTrack found demand for rentals has intensified in the capital cities, with enquiries per listing up 31.1 per cent.
According to Mr York, “The way buyers and renters inspect property has changed significantly since 2020. While buyers and renters can view properties in person, given the speed at which properties are renting, this may not always be possible.
“Given the extremely competitive nature of the rental market at present, renters are looking for any advantage. Many are willing to accept a property sight unseen based on a virtual inspection, allowing them to act much more quickly when the right property becomes available”, said Mr York.
The report also shows that the percentage of renters inspecting property internationally is higher than those looking to purchase from overseas. 9.4% of renters are inspecting from overseas, compared with the 6.8% of buyers who are inspecting from outside Australia.
Recent government changes to the permanent Migration Program aimed at addressing the skills shortage gap have resulted in a much tighter rental market, combined with a return of overseas tourists and international students.
“Those migrating to Australia are unlikely to have a clear idea of where they might want to live, so are more likely to rent for a bit to test out where they want to settle. This explains the higher numbers of rental inspections from overseas markets, compared with buyer inspections”, said Mr York.
February 2023 Interstate and International Rental Inspection Figures:
- Gold Coast
- Interstate inspections: 23.5%
- International inspections: 10%
- Sunshine Coast
- Interstate inspections: 32.6%
- International inspections: 7.4%
- Brisbane
- Interstate inspections: 15.9%
- International inspections: 7.6%
- Melbourne:
- Interstate inspections: 16.2%
- International inspections: 9.7%
- Perth:
- Interstate inspections: 20.2%
- International inspections: 11.5%
- Sydney:
- Interstate inspections: 8.7%
- International inspections: 9%
February 2023 Interstate and International Buyer Inspection Figures:
- Gold Coast
- Interstate inspections: 39.1%
- International inspections: 7.8%
- Sunshine Coast
- Interstate inspections: 37.7%
- International inspections: 6.4%
- Brisbane
- Interstate inspections: 18.9%
- International inspections: 5.8%
- Melbourne
- Interstate inspections: 20%
- International inspections: 6.5%
- Perth
- Interstate inspections: 21.5%
- International inspections: 5.9%
- Sydney
- Interstate inspections: 10.2%
- International inspections: 7.7%
Little Hinges analysed over 300,000 virtual inspections for their Sight Unseen report released for buyer and rental markets in February 2023.
