The Rental Market Continue to Perform Well
with Leigh Martinuzzi
In most parts of Australia, the property rental market has continued to improve with most capital cities and regional areas recording rental fee gains. Across the combined capital cities, the median rental prices for housing have increased 2.5% for the last quarter and 5.5% year on year. Brisbane and areas of the Sunshine Coast are seeing figures reached above the national average year to date. Over the past year, Brisbane house rents increased 10.8%. According to Domain, this is the longest sustained period of rising rents in 14 years recording five consecutive quarters of price increases.
On the Sunshine Coast, there is a severe rental shortage which is causing upward pressure on asking rents. Rental prices have experienced a 14% gain in the past year with the median asking rent now $570 per week. Unit rents have also increased by just under 14% with the median asking rent of $450. According to information provided by Property Investar, the rental population here on the Coast is 26% compared to Queensland’s rental population of just under 30%.
Naturally, with significant rental shortages, the vacancy rates are the best we’ve seen them for some time. Currently in Queensland vacancy rates are 0.82% and on the Sunshine Coast just over 0.6%. As property prices continue to climb more tenants are forced to rent for longer, as affordability becomes a barrier to purchase. In Melbourne, it’s more so a renter’s market having now experienced the longest periods of lockdowns in the world. Particularly in the inner-city unit market, rental fees have decreased, as more tenants choose to move out of the cities.