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Today, we share insights from CoreLogic's research on Australia rental market update. Credit to Eliza Owen and the CoreLogic team for their detailed analysis.


The median weekly rent value across all Australian dwellings has hit a new record high of $627 per week, with rental costs ranging from $770 per week in Sydney to $547 in Hobart.


Summary of Median Weekly Rent and Value Change (Data as of April 2024)

Region

Median Weekly Rent

Monthly Change in Rents

Quarterly Change in Rents

Annual Change in Rents

Sydney

$770

1.0%

3.0%

9.0%

Melbourne

$589

0.8%

2.8%

9.6%

Brisbane

$649

0.8%

2.1%

8.5%

Adelaide

$589

0.6%

2.4%

9.1%

Perth

$669

1.2%

3.9%

13.6%

Hobart

$547

0.2%

2.5%

-0.2%

Darwin

$617

-0.3%

-0.1%

3.5%

Canberra

$674

0.6%

1.9%

1.8%

Combined capitals

$659

0.9%

2.9%

9.4%

Combined regionals

$540

0.7%

2.5%

6.4%

National

$627

0.8%

2.8%

8.5%




Rather than being limited by affordability constraints, annual rent growth has picked up at the start of 2024. Nationally, annual rent growth went from a recent low of 8.1% in October 2023 to 8.5% in April.


Even markets where rents had been falling are now starting to stabilise or increase again. For instance, Canberra house rents fell to -3.4% in the year to September but have been rising over the past seven months, resulting in a year-on-year increase of 1.8%. In Hobart, house rents are back in positive growth territory, and unit rents are close to flattening out.


Rolling Annual Change in Rent Values by Greater Capital City Area

Regional rent growth is also back on the rise. Annual growth in regional unit rents bottomed out at 5.0% in September but climbed to 6.9% in April. Regional house rents saw even more dramatic reacceleration, with annual growth rising from 3.4% in September to 6.2% in April. This was most pronounced in regional Queensland and Tasmania.


Part of the reason for the national re-acceleration in rents could be due to renters being forced into more affordable, peripheral housing markets. Areas with slightly lower rents may offer more space for group households or less competitive rental conditions, attracting more tenants.


Between October last year and April this year, growth re-accelerated most strongly in greater capital city areas within 30-40 km of city centres. In Sydney, this included Campbelltown, where annual growth went from 9.1% in October to 13.4% in April. In Brisbane, this included Jimboomba, where annual rent growth went from 3.8% to 6.4%. Casey – North in Melbourne also saw a rise, with annual house rent growth increasing from 11.7% to 13.1%.


While outer-suburban markets are seeing the most rapid re-acceleration in rents, the pickup in rent growth has been broad-based, with only markets within 10 km from city centres showing a consistent easing in average annual growth.


On the demand side, average household size continued to decline to 2.50 people in June 2023, despite an increase in group households. Net overseas migration in the year to September was just under 550,000, with temporary visa holders accounting for over 90%. This has likely skewed towards rental accommodation, with new household formation of over 200,000 in the year to September, while only 173,000 new dwellings were completed.

Given the supply constraints, reprieve in the rental market is most likely to come from a moderation in net overseas migration. Until then, renters may seek more shared accommodation or explore cheaper rental markets in outer metro fringes or regional Australia.


What This Means for You

At DMC Property Advisory, we understand the dynamics of the rental market and the challenges it presents. Whether you are a property owner, investor, or renter looking to buy, our team is here to guide you through these changes and help you make informed decisions.


For property owners and investors, now is an opportune time to evaluate your portfolio and consider strategic investments in high-growth areas. Our expert advisors can assist in identifying lucrative opportunities and maximising your returns.


For renters, navigating the market can be challenging. We offer services to help you find suitable and affordable housing options, even in a competitive market.


If you have any questions or need personalised advice, don’t hesitate to reach out to us. We are committed to providing you with the insights and support you need to thrive in today’s rental market.



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