Brand new apartments are offering eight weeks of free rent to lure in tenants after the coronavirus pandemic sparked an economic downturn.
Newly-built development Marquee, located in Amaroo in the Australian Capital Territory, is offering 107 apartments from $360 per week.
But for the first eight weeks tenants would be paying absolutely nothing.
Real estate agent from Independent Property Management, Liz Harvie, said this is the first time an entire development has offered this kind of deal in Canberra.
This spacious and stylish one bedroom apartment in the new development Marquee in Canberra is offering eight weeks of free rent
Newly-built development Marquee, located in Amaroo in the Australian Capital Territory, is offering 107 apartments with the free rent deal
‘It’s something we have done in the past but for individual apartments, which we found successful,’ she told Allhomes.
Applicants who apply for a two-year lease will receive eight weeks of free rent, meanwhile those that apply for a one-year lease will get four weeks rent-free.
Ms Harvie said the deal was an incentive to attract potential tenants during the COVID-19 pandemic.
‘It’s a way to give prospective tenants that incentive to rent, to save money and make it easier for them to get into the marketplace,’ she said.
Ms Harvie said majority of the 107 apartments are one-bedroom but there are also studio spaced and two-bedroom apartments on offer.
‘There’s also an Aldi downstairs from the apartments, a restaurant and a nail salon which will be convenient to the tenants once it opens,’ Ms Harvie said.
The apartments were listed online just one week ago and Ms Harvie said she has since been flooded with applications.
‘So far, it’s been very busy and I’ve received over 20 applications,’ she said.
Before restrictions on open homes were listed Ms Harvie was conducting back-to-back inspections for prospective tenants, who were keen because of the free-rent.
The rental market has plummeted as many renters left the market due to the coronavirus health crisis.
Ms Harvie said majority of the 107 apartments are one-bedroom (pictured) but there are also studio spaced and two-bedroom apartments on offer
Landlords in major cities have taken drastic action after many renters left the market; either moving back in with parents to save money or expats going back overseas.
With hundreds of thousands of Australians and foreign workers stood down by businesses across the country, many were unable to pay their rent and left major cities.
Consumer researcher Graham Cooke, from Finder.com.au, said the pandemic is creating a ‘tenant’s market’ in major cities.
Mr Cooke said the outlook is improving for lease-hunters, with rents expected to drop by up to 10 to 20 per cent.
Fewer international students, a slow housing market and a ban on Airbnb rental properties in NSW is expected to place downward pressure on rents.
The apartments were listed online just one week ago and Ms Harvie said she has since been flooded with applications
He explained: ‘There’s been three drivers behind it – student accommodation, there’s not a lot of students coming in from overseas.
‘We’re already seeing a lot of short term rental properties coming onto the long-term rental market after Airbnbs were declared illegal.
‘(And) because of the difficulty of selling a house right now, we’re probably going to have a lot of people who were trying to sell postponing.
‘That will lead to an increase in stock on the market, which will probably, in turn, push rents down’.
Daily Mail Australia has contacted Ms Harvie and Independent Property Management for comment.