Australia’s largest PBSA provider, Scape, Australia has announced a 2.5% rent reduction for all new bookings for Semester 1 this year across all properties nationally.
Scape has made this move following the recent 0.25% interest rate reduction by the Reserve Bank of Australia (RBA). Furthermore, it is calling on other rental providers to follow suit in passing on savings to tenants.
A statement sent to the Koala says, ‘Scape recognises the need for immediate action to alleviate pressures on tenants in an overheated rental market. The rent reduction, which equates to 1000% of
the RBA’s interest rate cut, will be for all students booking a room from today and checking in for Semester 1, for the full length of their lease.’
Craig Carracher, Chairman and Co-Founder of Scape Australia says, “The shift in interest rates provides a much-needed release valve for Australia’s renters.”
“Just as banks are expected to pass on reduced capital costs to borrowers, landlords – especially those benefiting from geared investment properties – wherever possible, can pass savings on to tenants.”
Scape Australia believes that large-scale rental ownership can help challenge traditional build-to-sell
market norms and set new standards in Australia’s rental sector. By leading this initiative, Scape hopes to experience a slowdown in cost inflation more broadly which should flatten out the drivers of accelerated rental growth.
