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.
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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.