Rental Market Updates 2021 Q1 and Q2

July 2021 was a tumultuous month that left a question mark on how widely spread the impact would be felt. To find out, we took a look at TPN data to see if any new trends had begun to emerge for tenants in good standing.

A tenant is in good standing if rent is paid on time and in full. In other words, their account is settled in full with no arrears on the account by the last day of the month.

Residential: 81.5% of residential tenants were in good standing prior to lockdown in the residential sector. Enter the hard lockdown and tenants in good standing dropped all the way down to 73.5% for the residential market. Over the last few quarters, that number has picked back up to 78.38%. So what is the latest data telling us? In Q2, residential tenants have crept into the 79% mark, indicating a continuous slow recovery.

Commercial: In the commercial market, 77% of tenants were in good standing pre-lockdown. In the hard lockdown month, it plummeted to 50.36% which recovered to 62.52% in Q1. Amazingly, it went up to nearly 65% in Q2 - a continuous improvement then also evident in commercial tenant payment behaviour in the first half of the year.

As yet, there has not been a deterioration in tenant payment behaviour after the riot action in July. The concern is that there is an expectation of deterioration, a claw back in good standing that is expected particularly in the retail sector in August. 

For a full analysis of the residential and commercial rental market in the first half of 2021, you can watch TPN's CEO, Michelle Dickens, unpack the latest trends here: 

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