Australia’s Canberra will be the first city spared from the vacancy crisis. Tenants from the rest of Australia, however, continue to suffer from this situation.
According to SQM Research data, the home of Commonwealth public servants was the only market in the capital where residential rents fell last year. SQM Research managing director Louis Christopher said the rental crisis had eased because fewer people who could work from home were moving to smaller towns and regional areas.
He added that another reason others were suffering was that some people were returning to the bigger cities because of the re-opening of offices.
Last month, Canberra’s vacancy rate was 2 per cent – a figure well above the national average of 1.2 per cent. In contrast, the average flat rent in Canberra fell 0.6 per cent last month to $757.84 (INR 62,343) per week. This makes Canberra the only market in the Australian capital where rents are cheaper than a year ago.
In addition, the Treasury Papers forecast that Australia will receive around 4,00,000 new immigrants in 2022-23. For the year 2023-24, the number will be 3,15,000.
To find a solution to this problem, several advocates are pushing for other measures to provide faster relief to low-income households. Another solution is the construction of social housing.
However, this step should be seen as temporary. It will be implemented in parallel with long-term measures that address the root causes of the housing crisis. The best solution to this problem, however, is a sustained reinvestment in public housing on a scale commensurate with the thousands of people who need it.
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