Scape Australia Reduces Rents by 2.5% Following RBA Rate Cut, Calls for Industry-Wide Action

Scape, Australia’s largest owner and operator of purpose-built-student-accommodation (PBSA) has just announced a 2.5% rent reduction for all bookings from today checking in for Semester 1 this year across all properties nationally, following the recent 0.25% interest rate reduction by the Reserve Bank of Australia (RBA). Scape is calling on other rental providers to follow suit in passing on savings to tenants.

As a leader in the student rental market, 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.

“The shift in interest rates provides a much-needed release valve for Australia’s renters,” said Craig Carracher, Chairman and Co-Founder of Scape Australia.

“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.

“We are proud to take leadership in the student accommodation sector and hope this move is reflected across the wider rental market,” added Mr Carracher.