NewsBite

‘Perfect storm’ of high vacancy, falling rent hurts investors

Nila Sweeney
Nila SweeneyReporter

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Key Points

  • Investor wipeout is unlikely despite weak rentals, says AMP Capital's Shane Oliver.
  • The highest proportion of stressed investors are in the Sydney and Melbourne CBDs.
  • Units and apartments are more likely to cause financial stress than houses.

Soaring vacancies and widespread rental discounting have squeezed investors' cash flows to the extent that almost two in every five landlords are in a position of financial stress.

The closure of Australia's international borders in March that cut demand from tourists and international students has put CBD rentals under pressure and triggered a surge in vacancies, particularly in the Sydney and Brisbane CBDs, during April and May.

Loading...
Nila Sweeney writes on property from our Sydney newsroom. Email Nila at nila.sweeney@afr.com.au

Subscribe to gift this article

Gift 5 articles to anyone you choose each month when you subscribe.

Subscribe now

Already a subscriber?

Read More

Latest In Residential

Fetching latest articles

Most Viewed In Property

    Original URL: https://www.afr.com/property/residential/perfect-storm-of-high-vacancy-falling-rent-hurts-investors-20200616-p5538h