By Isabel Hayes
Over the last couple of years there has been an ongoing rental crisis in many of Australia’s capital cities, meaning finding somewhere to live is often a major headache for Irish travellers.
However, recent reports have indicated that vacancy rates are increasing in most cities and that the rental situation may not be as dire as it seems.
In 2008, rental vacancies in Sydney and Melbourne regularly fell below 1 per cent, leading to fierce competition for the most basic of accommodation. Long queues to view properties and huge advance deposits were commonplace amongst Irish backpackers desperate for accommodation.
Last month, the percentage of available rental properties in Sydney was 1.3 per cent, according to the Real Estate Institute of New South Wales (REINSW). The corresponding body for Melbourne (REIVIC) put the city’s rental vacancy at 1.4 per cent in August, a very slight increase of 0.2 per cent on July’s figures.
“There has been an acute rental shortage in Sydney for the past 18 months,” REINSW President, Steve Martin, told the Irish Echo. “The influx of people arriving in Sydney is far greater than the rate of housing and until the government provides an incentive for investors, this situation is only going to worsen in the coming months.”
However, according to independent property advisory and forecasting group SQM Research, Sydney’s rental crisis is not as bad as has been reported. In August of this year, they recorded approximately 10,000 vacant properties in the city and a vacancy rate of 2 per cent. In Melbourne, they recorded a vacancy rate of 3.2 per cent and rising – far higher than the REIVIC figures.
“I don’t believe there is a rental crisis at the moment,” SQM spokesman Louis Christopher told the Echo. “The number of available rental properties in Melbourne and Sydney have been rising steadily since July 2007.”
Suburbs popular with Irish travellers such as Bondi and St Kilda had vacancy rates of 2.4 per cent and 3.7 per cent respectively last August according to SQM. But how much comfort is that for backpackers in urgent need of cheap accommodation?
“It certainly appears that there are higher numbers of vacancies at the upper end of the market due to the economic downturn earlier this year,” Christopher said. “Backpackers looking at the more affordable end of the market may find it is still a very tight market out there.”
Aidan McGowran (27) from Palmerstown, Dublin has been looking for an apartment in Sydney’s eastern suburbs since October 7.
“It definitely feels like there are more apartments available now than the last time I was looking,” he said. “When I went looking for an apartment in June 2008, everyone told me I’d have no hassle finding somewhere to stay as it was winter time and quiet. But it took me over 3 weeks and I ended up paying well over the odds.
“This time I have looked at several apartments, most of which have only had a couple of other people viewing them. I reckon I could have secured one easily enough by now but I’m not backpacking anymore so I’m a bit choosier about where I want to live for the next couple of years.”
There’s good news for people arriving in Brisbane as the city’s rental vacancy rate is universally agreed to be on the rise. In August 2009, SQM recorded a vacancy rate of 3.3 per cent and say this is rising.
According to the Real Estate Institute of Queensland’s (REIQ) managing director Dan Molloy, the government first home buyer incentives has helped to alleviate the pent-up demand that has been burdening the Qld rental market for the last four years.
“Low interest rates and thousands of renters becoming first home buyers have helped rents to stabilise in Qld over the September quarter,” he told the Irish Echo.
However, Irish people coming to Australia for the first time are often at a disadvantage when it comes to supplying landlord and employer references. Robert Larocca of the REIVIC advises backpackers to be flexible when it comes to location choices and to try to make their application stand out from the rest.
Having good references – even from the person or hostel you are currently staying with – can help make a difference. Current employment references or proof of your ability to pay the rent for a few months is also a must.
Many backpackers are surprised to discover that the vast majority of apartments in Australia come unfurnished. There are several companies that specialise in renting out appliances or furniture, message boards such as gumtree regularly advertise furniture for sale in all areas and if you’re really hard up, you’ll be pleased to know that it’s often easy to pick up a decent sofa or two that have been left on the side of the street.
If that doesn’t suit you, it’s possible to find furnished apartments through specialised rental companies such as The Furnished Property Group.
PANEL – RENTS Rents are on the rise in most cities – Sydney alone has seen a whopping 32 per cent rent hike in the past three years. However, there is recent evidence that rents are levelling out in cities such as Brisbane and Perth.
