Impact of Covid on Australia Rental Market and Trends : A Case Study
Joseph Leung from KozyGuru, operates short-term rental in Sydney, Melbourne, Brisbane and Gold Coast, was featured in the 『Australian Financial Review』Interview about Australia Rental Marke before and after the outbreak.
Joseph Leung said: Last year was tough because of COVID-19, but in 2021, strong demand is back and pre-embargo bookings are very good because people have been locked up for a while and they want to get out and about. It is believed that once the epidemic subsides, the market will be able to start to come alive again.
The short term rental market in Sydney was buoyant before the epidemic, except for the period of lockdown, but the rest of the year it was not affected too much and some landlords had record revenues during this period! It is believed that Sydney's short-term rental market will perform even better after the epidemic.
Brisbane's rental market, on the other hand, has been a relatively stable growth and outstanding performer, without being hit very hard by the epidemic.
Melbourne, on the other hand, has seen a relatively stable epidemic in the state, and with the long-standing weakness of the local long term rental market, many homeowners have turned to the short term rental market to embrace it, making Melbourne's short term rental market quite active recently!
Joseph Leung said in interview:
New listings are coming on and that KozyGuru is diversifying by partnering with regional short-term property managers in areas such as Toowoommba and the Blue Mounttains, helping with technology and marketing.
The international epidemic, COVID-19, has weakened demand from international students and migrants, but domestic occupancy has increased year on year, indicating supply and demand in Australia's short term rental market.
There is a massive capacity for rental accommodation in Australia, as the supply of housing has not kept pace with the increase in population (including migration), and the rise in the number of Airbnb in recent years due to the prevalence of interstate travel has increased the demand for long-term tenancies.
However, the emergence of COVID-19 has created additional pressure. This trend has accelerated, adding other rental demand, as the already high levels of internal migration and the epidemic has accelerated the movement of people out of their state capital cities and into different parts of Australia, which in turn has led to the growth of the rental market in some of the more remote towns.
Case study - Brisbane short-term rental
Let's talk about a real-life KozyGuru case today. About this accommodation:
- 4 Guests - 2 Bedrooms - 2 Beds - 1 Bathroom
- South Brisbane | Comfortable 2 bedroom flat + free parking |
- South Brisbane, Queensland, Australia
Due to the epidemic, the homeowner is stuck in the country and therefore unable to come to Australia to manage the house. The house has been empty for some time and as a result, he has accumulated some outstanding fees such as building management, water, property and municipal fees.
After the landlord approached the KozyGuru team to help manage the process, we were able to help the landlord get the arrears sorted out and online in 2 months and the occupancy rate went through the roof! Not only did it solve the landlord's problems but it also increased the landlord's extra income.
KozyGuru's one-stop, fully managed service takes care of all the work for the landlord, plus a proprietary system for homeowners to see immediate updates on the status of their property, making it easy to stay home and earn a significant amount of extra income, even if they are now unable to enter Australia due to the COVID-19 outbreak.
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