A report from the Australian Financial Review. "Apartment rents nationally recorded their biggest price drop in more than 15 years, with the rental markets in most capital cities suffering from the impact of COVID-19 over the June quarter. 'For the past two years Sydney unit rents have tumbled annually as tenants benefited from heightened investor activity in previous years, as completed off-the-plan apartments add to supply,' Domain senior research analyst Nicola Powell said. 'The pace of decline has now gathered additional momentum. The city and east, inner west and lower north shore have felt the brunt.'"

"Amanda Gould, property investor and founder of HighSpec Properties, said she was forced to drop the rent of her two-bedroom Darlinghurst apartment significantly after her tenants moved out just before COVID-19 hit."

"'The only tenants who were willing to take their place wanted an $80 reduction and new carpet. So I replaced the carpet, which cost me a few thousand dollars and I took an $80 loss, so that has affected my rental yields,' Ms Gould said. 'I'm lucky I bought it a long time ago, so it wasn't too bad, but if you bought in the recent years it would be very tough. This is the most I've ever had to drop rent.'"

"According to Domain figures, the number of advertised rentals jumped by almost 13 per cent across Sydney between March and June. Advertised rentals surged in Sydney's city and east by 43 per cent and 29 per cent in the inner west, as landlords hoped to convert their short-term rentals to long-term ones as the tourism industry went into hibernation."

"'Vacancies have surged in inner Melbourne, with advertised rentals lifting 64 per cent from March to June,' Dr Powell said. 'This has created a discounting war, forcing one-third of inner Melbourne landlords to slash asking rents in an attempt to secure a tenant.'"

"Anna Porter, principal at Suburbanite, warned investors had to be very realistic about rental prices, or face lengthy periods of vacancy, particularly across the Sydney unit sector. 'Investors need to get more creative if they want to avoid lengthy vacancy periods, by doing things like offering rent-free periods, a free internet connection or a six-month gym membership to a local gym if they want to make their property stand out from the rest,' she said."

Two reports from Domain News. "'Rental prices fell across most major capitals, illustrating no city was immune from the impact of coronavirus, with Sydney and Hobart units recording the steepest quarterly fall on record,' said Domain senior research analyst Nicola Powell. Inner-city areas with high concentrations of apartment buildings have fared the worst in recent months."

"'That’s because these areas have seen a strong lift in the number of advertised rentals between March and June,' Dr Powell said. 'You have to remember increased supply is occurring when we have weakened demand, driven by border closures and the halt to tourism, migration and the arrival of international students.'"

"AMP Capital chief economist Shane Oliver warned that, in the absence of a vaccine, the virus could potentially deliver a long-term hit to city rents. 'The virus itself has made apartment living less popular,' Mr Oliver said. 'They’ve called them vertical cruise liners.'"

"Brisbane’s longest run of rental stability has ended, with house and units rents falling over the last three months, new data shows. The report found asking prices for apartments in the Brisbane local government area fell by 1.3 per cent over the quarter, although Eaden Hockings, of Living Here Cush Partners, said inner-city units had been hit much harder."

"'There are certainly pockets and areas that suffered a much greater drop than that,' Mr Hockings said. Areas like Spring Hill, with high levels of interstate and overseas travel, had been strongly hit, he said. And demand for inner-city furnished properties in the $300 to $600 range, that often typically cater to international students, had 'completely fallen away.'"

From Nine News. "Melburnians could see a further drop in rental prices. 'Vacancies are likely to remain high in the coming months across metropolitan and tourist areas, which could result in further rent reductions,' Dr Powell said. 'Any potential renewed short-term demand from interstate travel has been curtailed as Melbourne enters a second lockdown.'"

The Urban Developer. "Property investors, struggling with falling rents and rising vacancies, now face a further cash flow crunch as the number of empty rental homes languish on the market. According to recent research from industry data provider Suburb Trends, more than 60,000 rental properties analysed across June currently sit empty for over 21 days—a 46.1 per cent jump compared with May."

"Homes typically listed for Airbnb have also flooded into the rental market, further adding to supply. With approximately 120,000 Airbnb properties available for rent across Australia analysts also expect around 30,000 properties to transition into the long-term market amid the lockdown.