April2022

RentalReport

March2022Quarter

Author:CameronKusher,DirectorEconomicResearch,PropTrack

Contents

Introduction

Rentalprices

Rentalyields

Outlook

escalation-butthiswilltakesometime.

Introduction

Thestrongdemandforrentalsexperiencedin2021has continuedoverthefirstquarterofthisyear.Whilethe annualgrowthinrentsinSydneyandMelbourneremains slowcomparedtootherpartsofthecountry,thesecities arestartingtoseeshortagesandpricesarebeginningto rise,givenlockdownshaveended,bordershave reopened,andmigrationisreturning.

Demandremainsnearrecordhighlevelsnationally, sittingatanhistoricpeakthroughoutthecombined capitalcities,whileithasfallenmoderatelyfrom itspeak inregionalmarkets.Thevolumeofpropertieslistedfor rentatanationallevelhascontinuedtoreduceover recentmonths,exacerbatingshortagesofstockand pushingpriceshigher.

Throughouttheyear,investmentinresidentialproperty continuedtorise.Despitegrossrentalyieldscontinuing tofall,lowinterestratesandongoingrentalgrowthdue tothereductioninsupplyhasmaderesidentialproperty investmentmoreattractive.Thiswilltranslateintomore stockforrentandsomeeasingoftherentalprice

Thetightnessofrentalsupplyishighlightedbythe ongoingdeclineinnewandtotalrentallistingsover theyear.Rentalpropertiesarealsosittingon realestate.com.auforanhistoricallylownumberof daysaspeoplesnapupavailablepropertiesas quicklyaspossible.

Demandforrentalpropertieswasatanhistorichigh acrossthecombinedcapitalcitiesinMarch2022and althoughitremainselevatedinregionalareas,ithas fallenfromitsrecenthighs.Weexpectthesetrends tocontinue,withrentaldemandstrongoverallbut increasinginthecapitalcitiesandeasingsomewhat

inregionalmarkets.

Rentalprices

Medianweeklyadvertisedrentalrateswere unchangedoverthethreemonthstoMarch2022.

However,theyincreasedby4.7%year-on-year,which isthestrongestannualrateofrentalgrowthrecorded sincebefore2015.

Quarterlymedianweeklyadvertisedrents

(capitalcitiesvs.regional)

CombinedCapitalCitiesCombinedRegionalMarkets

Rentsacrossthecombinedcapitalcitieswere1.1% higheroverboththepastthreemonthsandthe pastyear.

Acrossthecombinedregionalmarkets,rents increasedby2.4%overthepastthreemonthsand theyhaverisenby10.3%year-on-year.

Rentalgrowthforhousesremainsstrongerthanunits.

Nationalhouserentswere4.3%higheroverthe quarterand6.7%higheryear-on-year,whileunit rentalgrowthwas2.4%forthequarterand2.4% higheryear-on-year.

Lookingatindividualcapitalcityandregionalareas clearlyhighlightstheinsufficientsupplyandstrong

demandinmostpartsofthecountry.

$460

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M ar-15

Jun-15

Sep-15

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REA Group Limited published this content on 22 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 April 2022 06:57:07 UTC.