The rental market in capital cities in March once again showed a sustained tense situation, with finding suitable housing still a nightmare for tenants. Data shows that rents for units and houses continue to rise, while the vacancy rate for units, although slightly increasing, still fails to reach the balanced state needed by the market.

The tense situation in the real estate market is closely related to various factors. Dr. Andrew Wilson explained why rising interest rates have not truly dampened economic growth, including the continued growth of Australia's social retail sales, exceeding pre-COVID-19 levels. However, inflation and an increase in new immigrants have also contributed to this growth. Despite the impact of rising interest rates, the real estate market still maintains a relatively active trend.

Internet

In terms of real estate development, although the number of projects obtaining construction approvals has increased, it does not necessarily mean that these projects can be completed quickly. At current market prices, there are still doubts about whether many new apartment development projects can be profitable. Therefore, the long-term shortage of houses and apartments will continue for some time.

On the other hand, the decrease in the number of building approvals also reflects changes in the market. Melbourne's exceeded expectations in building permits partly explains why the city's real estate market performance is not as strong as other states. School holidays in Melbourne and Brisbane may have diverted people's attention, but after the Easter holiday, weekend auction markets reported overall more positive results.

Adelaide had the highest auction clearance rate, and the performance in other capital cities was also good, albeit with slight declines. The number of auctions is expected to be lower after the Easter holiday, but overall, it is still higher than the same period last year. This indicates that despite facing challenges, there is still a certain level of activity in the market.