With the coronavirus grinding the tourism industry to a halt around the country, the flow-on effect to property markets is getting felt immediately.
A number of key tourism hotspots are now finding rental prices falling dramatically and vacancy rates spiking as short-stay accommodation floods the longer-term rental market.
Ripehouse Advisory recently conducted research into which markets are being the most impacted around the country and its no surprise to see some of the names at the top of the list.
The Yarra Valley hub and other Victorian holiday hot spots have faced some of the highest rental income losses, while Healesville has taken a massive 40 per cent drop in asking rent during the COVID-19 crisis.
Elsewhere, the Mornington Peninsula suburbs Dromana and Portsea and Surf Coast spots including Torquay were other suburbs under threat of massive property income loss in Australia according to the analysis from Ripehouse Advisory.
Ripehouse Advisory chief executive Jacob Field said there was a “dramatic oversupply of rental properties” as Airbnbs and short-term accommodation was added to the market.
“Residents are dramatically decreasing the asking rent for these properties to try and attract some interest from prospective tenants, who are few and far between,” Mr Field said.
“We are already seeing signs of distress from the owners of these properties, who rely on the income the properties produce to pay their mortgages or cover their personal living expenses.”
Mr Field also thinks coronavirus-related income loss could last up to a year if homeowners locked themselves into 12-month leases at discounted rates.
Popular inner-city rental suburbs in Melbourne, including South Yarra, Carlton North and Abbotsford have also seen sharp reductions in rent - more so than most areas across the country.
The Ripehouse Advisory study identified blue-chip suburb Albert Park as one of Australia’s “safe havens” for rental income.
Complete and original article written by Jayitri Smiles, published in the Herald Sun: Coronavirus: holiday hot spots, inner-city suburbs most impacted