Rent.com.au’s April 2023 report shows changes in Australian median rental prices, affordability, and time on the market. Here is the latest data on the country’s metro and regional property leasing trends.

IN SUMMARY  

  • Sydney recorded the highest median rent for apartments and houses, with monthly increases of 1.5% and 4%, respectively.
  • Sydney also recorded the highest combined price per room, against a monthly increase of 7.6%, while Adelaide saw the lowest price per room at $187, with a monthly increase of 2.2%.
  • Darwin experienced a 4% monthly increase in median rent for apartments but a 2.3% decrease for houses and a significant decrease of 7.6% in price per room.
  • The national median rent for apartments increased by 1.3%, by 0.8% for houses and the national median price per room increased by 4.2%.
  • There was no change in median rent or price per room for Melbourne and Canberra apartments or houses in April 2023.

VACANCY RATE CHANGES

  • NSW: 6.2% more rentals available
  • VIC: 6.2% increase in availability
  • QLD: 6.3% extra rentals available
  • WA: Availability falls by 0.6%
  • SA: A 5.9% lift in the number of rentals available
  • TAS: An uptick of 20.3%
  • NT: 9.2% decrease in availability
  • ACT: Available homes increase by 8.5%

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

Metro areaAPARTMENTSMonthly changeHOUSESMonthly changePRICE PER ROOMMonthly change
Sydney, NSW$6501.5%$7804.0%$3507.6%
Melbourne, VIC$4800.0%$5000.0%$207-1.9%
Brisbane, QLD$520-0.9%$6000.0%$210-1.1%
Perth, WA$5000.0%$5701.7%$2002.5%
Adelaide, SA$447-2.7%$535-4.4%$1872.2%
Hobart, TAS$4322.9%$5252.9%$213-0.7%
Darwin, NT$5204.0%$630-2.3%$200-7.6%
Canberra, ACT$5300.0%$6500.0%$2505.2%
National median$5571.3%$5800.8%$2454.2%
Source:2023 Rent.com.au property listing data

You might also like:
Consumer Price Index: What does it do?

How do I find my driver’s licence and card number?
Rental property viewings: What to look for and the questions to ask

PRICE TRENDS

What’s being talked about?

The Australian rental market is a hot topic, with renters across the country facing significant challenges. Unaffordable rents, inadequate housing, and even homelessness are a reality for many low-income renters struggling to find a place to call home. Despite numerous reforms and initiatives addressing these issues, the rental market remains unbalanced, with demand far outstripping supply.

In April, Anglicare’s rental affordability snapshot highlighted the dire situation for low-income earners, particularly those on minimum wage or Centrelink payments. The lack of affordable rental options has forced many renters to live in overcrowded or inadequate housing or, in some cases, to become homeless. This situation is particularly concerning given the current economic climate and the ongoing impact of the COVID-19 pandemic on employment and household finances.

The recent Australian Bureau of Statistics (ABS) report on the private rental market in Australia sheds further light on the challenges facing renters. While rents fell in many suburbs near central business districts during the pandemic, the current report reveals a trend of rent increases in inner-city and regional areas across all states since 2021. This is particularly concerning given that rent increases have become more common and larger on average, particularly for properties with frequent turnover. This trend will likely exacerbate the already challenging situation for renters nationwide.

Calls for reform continue to grow, with the Housing Australia Future Fund bill proposed by the federal government seeking to fund 30,000 social and affordable homes over the next decade. However, the Greens argue that the bill does not do enough to support renters, potentially setting the stage for a major legislative defeat for the government.

Similarly, the Queensland Government’s proposed rental reforms build on previous reforms to improve tenant protections and access to affordable housing. However, there is still much work to be done to create a rental market that is fair and accessible for all Australians.

In April, Rent.com.au released a list of the top 20 suburbs for renters in shared housing by state and territory, showing how renters can cut their weekly rent costs by up to 50% by choosing to share a house instead of renting an entire apartment.

Overall, the rental market presents a mixed picture, with median rent prices for apartments rising in most metro areas but taking a significant hit in Adelaide. Houses remained mostly steady, with minor increases in Hobart and Perth and a slight decline in Adelaide. The national median for median apartment prices increased by 1.3%, indicating growth in some areas, but Adelaide’s decline highlights the ongoing challenges in its rental market.

You might also like:
> Property Condition Report: What is it and how does it work?
> Renting glossary: The terms you need to know
> Why are my rental applications being rejected?

WHAT WILL A ROOM IN A RENTAL COST ME? 💰

Australia’s rental market has witnessed a significant surge in room prices over the past year. Annual changes in price per room indicate an upward trend for both apartments and houses across all major metro areas. Hobart experienced the highest increase in apartment prices at 26% and houses at 12%.

Sydney had the highest median apartment price at $400, representing a 24% increase from the previous year. Melbourne, on the other hand, had the highest increase in house prices at 11%. Canberra experienced a decline in apartment prices at 24%, while Darwin had a slight decrease of 3% in apartment prices.

The national median for apartment prices rose to $340, representing a 19% increase from the previous year, while the national median for house prices is now $190, a rise of 10%. These trends suggest that the rental market remains highly competitive, with a potential challenge for renters to secure affordable housing.

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

Metro areaAPARTMENTS% change (annual)HOUSES% change (annual)
Melbourne, VIC$31019%$16711%
Adelaide, SA$2256.%$1673%
Perth, WA$2756%$17915%
Brisbane, QLD$30020%$1838%
National median$34019%$19010%
Darwin, NT$218-3%$1995%
Hobart, TAS$32526%$21012%
Canberra, ACT$303-24%$2172%
Sydney, NSW$40024%$25011%
Source:2023 Rent.com.au property listing data

HOW ARE THE REGIONS FARING? 🌳

The latest data on regional rents in Australia for April 2023 shows some significant highlights. South Australia and Western Australia both saw the highest increases in rent, with both states experiencing over 19% year-on-year growth. South Australia also saw a significant rise of nearly 20%.

Northern Territory, Western Australia and Queensland share the title of most expensive states and territories for regional rents in April at $550/week. The national median for regional rent has increased to $500, a rise of 11.1%.

These trends suggest that the rental market in Australia’s regional areas is continuing to grow, with some states seeing substantial growth in demand for rental properties.

You might also like:
> Who is responsible for cleaning up mould in my rental?
> I’ve applied for a rental property. What happens next?
> Point hacking: Earn rewards by paying your rent with a credit card

Table 3: % change to regional rents in April 2023

State/TerritoryApr-23% change from April '22
New South Wales$5208.3%
Victoria$4005.2%
Queensland$55014.5%
Western Australia$55019.5%
South Australia$40719.8%
Tasmania$410-1.2%
Northern Territory$5500%
Aus. Capital TerritoryN/AN/A
National median$50011.1%
Source: 2023 Rent.com.au property listing data

HOW LONG ARE RENTALS TAKING TO LEASE?

The table of leasing times for April 2023 highlights the competitive nature of the rental market in some areas of Australia. While some cities such as Darwin experienced faster leasing times for both apartments and houses, others such as Sydney, Melbourne and Brisbane saw slower leasing times, making it more challenging for property owners and managers to fill their vacancies quickly.

However, the monthly changes also suggest that some markets remain highly competitive, presenting opportunities for landlords to achieve higher rental prices. The time on market (TOM) or time to lease (TTL) data can provide valuable insights into market trends and property performance, enabling property owners and managers to make informed decisions about rental prices and property improvements.

Table 4: Monthly and annual change to time on market in April 2023

Metro areaAPARTMENTSMonthly changeAnnual changeHOUSESMonthly changeAnnual change
Sydney, NSW16 days15% slower24.4% faster21 days5% slower4.4% slower
Melbourne, VIC17 days20% slower35.3% faster21 days6% slower8.4% faster
Brisbane, QLD14 days16% slower2.3% faster20 days20% slower33.8% slower
Perth, WA15 days9% slower13.4% faster15 days10% slower9.3% faster
Adelaide, SA15 days7% slower0.5% slower18 days7% slower13.2% slower
Hobart, TAS21 days30% slower31.3% slower20 days11% slower16.3% slower
Darwin, NT17 days16% faster19.4% faster20 days19% faster11.1% slower
Canberra, ACT21 days1% faster35.8% slower28 days12% slower37.1% slower
Source:2023 Rent.com.au property listing data
Rent.com.au

Rent.com.au is Australia's largest company dedicated to renters and is owned and operated by ASX-listed Rent.com.au Limited (RNT:ASX). For over 15 years, Rent.com.au has exclusively focused on making renters' lives easier by making it easier to find a property, secure it, move in and pay rent.

NO COMMENTS

LEAVE A REPLY