Latest / Best of Business / Kelvin Davidson: CoreLogic chief property economist on rental prices decreasing for the first time in two years

Transcript

Kelvin Davidson: CoreLogic chief property economist on rental prices decreasing for the first time in two years · Best of Business

• 0:09
  Speaker 1: You're listening to a podcast from News Talks'd be follow
• 0:12
  Speaker 1: this and our wide range of podcasts now on iHeartRadio.
• 0:16
  Speaker 2: Finally, we've got some respite for renters. Trade Mee's latest
• 0:19
  Speaker 2: property data has shown rental prices have decreased for the
• 0:21
  Speaker 2: first time since twenty twenty two. Just happened this month,
• 0:25
  Speaker 2: but only by five dollars. Calvin Davidson has called Logic's
• 0:27
  Speaker 2: chief property economist and with us. Hey, Calvin, no, what
• 0:30
  Speaker 2: do you reckon? Is this a one offer a trend?
• 0:34
  Speaker 3: Well, whether we get month or month falls from here on.
• 0:38
  Speaker 3: I think there's a little bit of the creative. You
• 0:39
  Speaker 3: don't really tend to see rents fall in any prolonged way.
• 0:42
  Speaker 3: But certainly there's a bigger picture here that rental growth
• 0:45
  Speaker 3: has slowed down. The rental market has shifted in favor
• 0:48
  Speaker 3: of tenants. There's a less demand out there and a
• 0:50
  Speaker 3: bit more supply. So we have seen rent slow. They
• 0:53
  Speaker 3: may not necessarily fall over the longer term, but I
• 0:55
  Speaker 3: have certainly flattered out.
• 0:57
  Speaker 2: Yeah, the lack of demand is that as a result
• 0:59
  Speaker 2: of immigration slowing down?
• 1:02
  Speaker 3: Yeah, I mean it's not that demand's falling necessarily, but
• 1:05
  Speaker 3: the rate of growth has certainly slowed down. Migration is
• 1:08
  Speaker 3: coming off its peaks. There's still people arriving in net terms,
• 1:11
  Speaker 3: but there's also people leaving, and so I think it's
• 1:14
  Speaker 3: probably more of a story of just a little bit
• 1:16
  Speaker 3: of that heat coming up, but the still migration there,
• 1:18
  Speaker 3: but as fast as once was.
• 1:20
  Speaker 2: What do you reckon landlords should be thinking at this point?
• 1:23
  Speaker 2: I mean, should they be considering dropping their rents to
• 1:25
  Speaker 2: get people in or is it not quite at that level?
• 1:28
  Speaker 3: Well, I mean up to the individual in the end,
• 1:30
  Speaker 3: I mean i'd also make a distinction between these figures
• 1:33
  Speaker 3: relate to what's happening on the market right now. Tenants
• 1:35
  Speaker 3: circling round, landlord's circling round. They don't really apply to
• 1:39
  Speaker 3: people already in existing tenancies. So if landlords have existing tenants,
• 1:44
  Speaker 3: that those rents are going to be at least if
• 1:45
  Speaker 3: it's on a fixed least, those rents aren't going to
• 1:47
  Speaker 3: change at least in the near terms. So it does
• 1:50
  Speaker 3: relate to the market. And so yes, if landlords are
• 1:54
  Speaker 3: out there reach logging for some tenants, you know they'll
• 1:57
  Speaker 3: have to price right to the market. I guess in
• 1:59
  Speaker 3: some locations that might still be stronger. Other locations might
• 2:02
  Speaker 3: be that weaker.
• 2:03
  Speaker 2: Calvin's good to talk to you. Thank you, mate, appreciate it.
• 2:05
  Speaker 2: As Calvin Davidson Chief Properly Economistic Call Logic.
• 2:08
  Speaker 1: More from News Talk set B Listen live on air
• 2:11
  Speaker 1: or online, and keep our shows with you wherever you
• 2:14
  Speaker 1: go with our podcasts on iHeartRadio