How is the cost of renting changing in your city? Rent.com.au has released the latest market data for July 2022, including the shift in median rent, price per room and leasing time.

In summary… ?

  • Properties still down: There are still 28% fewer available rental properties on the market, looking at the change from July 2022 versus July 2021.
  • Sydney, Melbourne, Perth and Canberra recorded monthly increases to the median rent for both property types.
  • The Reserve Bank raised interest rates for the third time in as many months to tackle inflation.

Table 1: Median rent (apartments v houses) and price per room

Metro areaAPARTMENTS HOUSES PRICE PER ROOM 
Source: Rent.com.au property listing data 2022
Median rent% change (monthly)Median rent% change (monthly)(all property types)% change (monthly)
Sydney$5453.80%$7001.40%$3003.40%
Melbourne$4202.40%$4702.20%$2001.50%
Brisbane$4500%$5601.80%$197-0.50%
Perth$4302.40%$5001%$1750%
Adelaide$3953.90%$480-1%$1750%
Hobart$45013.90%$5500%$2054.10%
Darwin$4700%$600-3.20%$2100%
Canberra$5505.80%$6800.70%$2753.40%
National median$4753.30%$5301.90%$2252.30%

Price trends (July 2022)

Apartment median rents climbed 3.3% month-on-month in Australia’s metro capitals. The increase comes as the Reserve Bank raised interest rates for the third time in as many months to keep a lid on inflation, which is predicted to rise to 7% this year. Rising rates may not be the only thing impacting rental affordability, however. Vacancy rates are also a factor, particularly as demand for rental properties rises.

A lack of supply is also responsible for increasing prices, as fewer owners put their second properties up for rent. With the return of domestic and international travel, the current supply of rental stock is spinning out as people choose to put their properties into short-term rental accommodation rather than long-term. It may be some time before rent costs drop again, as landlords feel the burden of increasing interest rates and weigh whether to pass them on to their tenants.

Rental growth continues to be supported by record low vacancy rates. Monthly growth in apartment rents is outpacing house rents in many places (and certainly at a national level). Though house rents saw more robust growth at the beginning of the pandemic, some renters have had little choice but to shift their preferences towards medium-to-high density living. As overseas migration returns to pre-COVID levels, rental demand will likely stay strong for some time and continue to pressure vacancy rates.

The outlook for apartments and houses is uncertain. With interest rate rises, inflation, and global uncertainty weighing on consumer sentiment, the outlook for apartments and houses is uncertain. But while it’s still a very competitive market, some increased investment activity has eased pressure on tenants. This, together with the new first home buyer government incentives such as Help to Buy, could go some way to assisting the transition of more tenants looking into the homeowner market for the first time and easing some of those demand pressures.

Looking at July’s median rent data, the most affordable metro capital was Adelaide, where apartment rents were $395 a week. Sydney, Melbourne, Perth and Canberra recorded monthly increases in median rent for both property types.

What will a room in a rental cost me? ?

The price per room metric provides an alternate perspective on the cost of renting space within a property in Australia. Apartment rooms today cost 20% more on average than in July 2021 (12 months ago), with the steepest of all changes recorded in Hobart– up 25.3% to $310 a week. Melbourne also recorded an annual jump of 22.2%, bringing the price per room to $216 a week.

Rooms in Brisbane and Perth apartments recorded their first annual increase since July 2019, rising 12.9% and 10.3%, respectively. A room in a Sydney and Canberra apartment will set renters back $350 a week (up 18.6% and 11.1% in that order) –the most expensive of all metro areas in July 2022.

Table 2: 12-month change in price per room (Apartments versus Houses)

 APARTMENTS HOUSES 
Source: Rent.com.au property listing data 2022
Metro areaPrice per room in Jul-22Annual change from July 2021Price per room in Jul-22Annual change from July 2021
Sydney$35018.60%$2339.40%
Melbourne$27522.20%$15810.50%
Brisbane$26512.80%$17512.90%
Perth$2508.70%$15710.30%
Adelaide$21610.90%$16010.30%
Hobart$31025.30%$1852.80%
Darwin$22910.20%$1872.80%
Canberra$35011.10%$22713.30%
National median$30020%$17510.10%

How are the regions faring? ?

Rents were up 2.1% in regional areas compared with June 2022. The shift that saw people leave the cities and move regionally has almost consistently pushed up the rent across over the last year or two, creating new challenges for locals who’ve been used to paying low rents over the years. The housing shortage still contributes to rent hikes, particularly as city-dwellers make the most of a COVID-induced at-home lifestyle and move into the regional areas.

In July, regional rents increased slightly by 2.1% to $470 weekly. Regional renters have needed to dedicate a higher proportion of their incomes towards rent than their capital city counterparts, which seems unlikely to change in the immediate future. Much of the regional growth has been in the areas adjacent to the major capital city boundaries.

Regional Western Australia led the pace of growth in July 2022, recording a month-on-month increase of 2.2%. It was the only state aside from South Australia to record a price increase. In July, regional New South Wales was the most expensive across Australia at $500 a week, followed by Queensland at $490 a week.

Table 3: Regional rents in July 2022

State/TerritoryJul-22% change from June 2022
Source: Rent.com.au property listing data 2022
New South Wales$5000%
Victoria$385-1.20%
Queensland$4900%
Western Australia$4602.20%
South Australia$3320.70%
Tasmania$4200%
Northern Territory$487-6.20%
Aus. Capital Territoryn/an/a
National median$4702.10%

How long are rentals taking to lease? 

Rent.com.au’s average time on market measure is designed to explain the movement in median rents across Australia. The 16 median days to lease a property in Perth in July was 16% faster than in June – and the most significant change to time on market for both property types across the board.

Melbourne apartments stayed on market longest of all of this property type in July, averaging 21 days listed on Rent.com.au before leasing. Houses also saw a general slowdown month-on-month, with Hobart 8% slower (now 19 days), Adelaide 7% slower (currently 17 days) and Canberra 4% slower at 21 days.

 APARTMENTS  HOUSES  
Source: Rent.com.au property listing data 2022
Metro areaMonthly change from June 2022Annual change from July 2021Monthly change from June 2022Annual change from July 2021
Sydney19.2 days5% faster35% faster21 days1% slower5% faster
Melbourne21 days12% faster38% faster21 daysNo change8% faster
Brisbane12 daysNo change32% faster14 days3% slower5% faster
Perth16 days16% faster28% faster16 daysNo change17% faster
Adelaide15 days9% slower27% faster17 days7% slower5% slower
Hobart16 days5% faster13% slower19 days8% slower22% slower
Darwin20 days6% slower10% faster18 days10% faster7% faster
Canberra18 days9% faster18% slower21 days4% slower31% slower

Rent.com.au

Rent.com.au is Australia's #1 website dedicated to rental property. We exist purely to make Property Managers' and renters' lives easier. Every service we offer is designed to give you the edge you need through better information, more quality applicants and better access to landlords.


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