Latest Rental Price Movements Across Australia

The bad news continues for those struggling to break into the property market, with rental prices increasing across the majority of states, according to Domain.

latest rental price movement across australia

Rental prices rise in Canberra, Hobart, Sydney, and Melbourne

Domain’s State of the Market report this week revealed that rental prices for both houses and units in Canberra, Hobart, Sydney, and Melbourne have recorded significant yearly increases.

The rental markets in each of these capital cities experienced tightening over the past year, providing more anguish for those who can’t afford to buy.

This is particularly bad for young Australians and first home buyers in these cities, who have recently been advised by economists to hold off buying property and to instead rent for the time being.

Related article: Should You Rent Or Buy? 
2017 March Quarter Median Weekly Rent – Houses
Capital Rent ($/week) Quarterly Change Yearly Change
Sydney $550 1.9% 4.8%
Melbourne $420 2.4% 5.0%
Hobart $370 5.7% 5.7%
Canberra $500 0.0% 7.5%

Source: Domain

2017 March Quarter Median Weekly Rent – Units
Capital Rent ($/week) Quarterly Change Yearly Change
Sydney $530 1.9% 1.9%
Melbourne $395 3.9% 3.9%
Hobart $300 0.0% 5.3%
Canberra $428 1.8% 8.2%

Source: Domain

Rental prices rose highest over the past year in Canberra, where house and unit rental prices rose by 7.5% and 8.2% respectively.

The average cost of renting a house there has risen to $500/week, resulting in the number of tenants renting there decreasing by 0.6% since, according to Domain’s report.

Melbourne rental prices grew at a faster rate than Sydney, with unit rents in particular surging in price over the March quarter.

Melbourne house rental prices have risen by almost 2.5% to $420/week since December. While Sydney recorded slower growth at 1.9%, the average rental price in Melbourne still falls a fair way behind Sydney, which remains the city with the second least affordable housing in the world.

It’s not all doom and gloom though for those looking for rent, as rental prices have actually fallen in the remaining capital cities.

Rental prices fall in Brisbane, Darwin, and Perth

Rental markets in Brisbane, Darwin, and Perth continue to be more appealing for tenants, if the latest figures from Domain’s report are to be believed.

2017 March Quarter Median Weekly Rent – Houses
Capital Rent ($/week) Quarterly Change Yearly Change
Brisbane $405 1.3% -1.2%
Adelaide $360 0.0% 0.0%
Perth $370 0.0% -7.5%
Darwin $550 0.0% -1.8%

Source: Domain

2017 March Quarter Median Weekly Rent – Units
Capital Rent ($/week) Quarterly Change Yearly Change
Brisbane $380 1.3% 0%
Adelaide $295 1.7% 1.7%
Perth $300 0.0% -14.3%
Darwin $430 -2.3% -4.4%

Source: Domain

Rental markets in Brisbane, Darwin and Perth fell by 1.2%, 1.8% and 7.5% respectively over the last year, while prices in Adelaide remained relatively stagnant.

Despite the decrease, Darwin remains the second most expensive city in the country to rent in, second only to Sydney, and not by much.

Things are looking very optimistic for Perth-based renters, particularly for those looking for units, as unit rental prices decreased by a staggering 14.3% in the west.

Rent rises set to continue

Despite rental prices dropping in these major cities, tenants should not expect this to last, according to Domain Group’s Chief Economist, Andrew Wilson.

Wilson said that high migration and the falling number of first home buyers is continuing to fuel the already strong demand for rental properties, and this demand will continue to rise despite the increasing number of apartments being built.

Recent figures from the Australian Bureau of Statistics show that for the first time ever, there were more apartments built than houses across the country this quarter.

There were 28,527 units built over the 2016 December quarter, compared to 28,102 houses.

Experts such as Mr Wilson believe that this will continue, with more and more people preferring to rent because of the flexibility it offers regarding where you live and the size of your house.

“There’s an element of people’s preferences changing – higher prices mean more renters, and more people want to rent somewhere low maintenance and convenient,” Wilson said.

Source: Domain

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