Median weekly rental prices rose at the fastest quarterly pace on record in the September quarter, according to the PropTrack Market Insight Report.
Weekly rental prices increased by a historic high of 4.3% over the quarter, following a 2.2% rise in the June quarter. Advertised rental rates rose 10.3% year-on-year, which was also the largest annual rise on record, the report said.
The national weekly median rent for houses is $500 and for units is $450.
“Rents are rising due to the ongoing low volume of stock available for rent and the strong demand for rental accommodation which is affording landlords with scope to increase weekly rents,” said Cameron Kusher, PropTrack director economic research and report author.
Capital rents increased by 3.2% quarter-on-quarter and were up 7.8% year-on-year, while regional rents were unchanged quarter-on-quarter and were 12.5% higher year-on-year.
Posting the fastest year-on-year growth on record for all dwellings were Sydney, Melbourne, and Brisbane.
“Rental pressures over the quarter were most prevalent for houses in regional WA and Adelaide and strongest for units in Sydney and Melbourne,” Kusher said. “Regional SA houses and units recorded the greatest softening of rents as demand for rentals outside of Adelaide eases.”
The report also found that house rents have increased at a faster pace over the past year, at 11.1%, compared to unit rents’ 7.1%. The gap between national house and unit rents has remained at $50 over the quarter and is still at the widest differential on record.
Meanwhile, recording the greatest increases over the past year were rents for four-bedroom houses (12%), five-plus bedroom houses (11.4%), and one-bedroom units (11.1%).
“With the supply of rental stock remaining extremely tight and migration to Australia lifting, we anticipate rents to continue to rise over the coming quarters,” Kusher said. “Capital cities are expected to see the lion’s share of growth as demand and subsequent rental price growth softens in the regions.”
