Rent.com.au’s December 2022 report shows changes in Australian median rental prices, affordability, and time on the market. Get the latest data on the metro and regional property leasing trends.

IN SUMMARY  📜

  • In Sydney, the median rent for apartments rose to $575, with a slight increase of 0.8% from the previous month. However, the median house rent and price per room remained unchanged at $720 and $300, respectively.
  • Moving onto Melbourne, the median rent for apartments increased by 2.2% to $450. The median rent for houses also went up by 2% to $490, while the price per room remains steady at $200.
  • Brisbane saw a similar trend, with the median rent for apartments rising to $500 and experiencing a 2% increase. The median rent for houses is $590, which increased by 0.8%, and the price per room is $203, which increased by 1.4%.
  • Perth’s market remained relatively stable, with the median rent for apartments remaining $450. However, the median house rent increased by 3.7% to $540, while the price per room decreased by 0.5% to $183.
  • Adelaide’s rental market also saw little change, with the median rent for apartments and houses remaining at $400 and $500, respectively. The price per room increased slightly by 0.5% to $177.

VACANCY RATE CHANGES

  • NSW: Availability up 13.2%
  • VIC: 2% increase in availability
  • QLD: 14.7% more rentals available
  • WA: Available rises by 5%
  • SA: An uptick of 8.5%
  • TAS: Vacancies decline by 0.7%
  • NT: 16.1% increase in availability
  • ACT: Available homes increase by 24.2%

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

Metro areaAPARTMENTSMonthly changeHOUSESMonthly changePRICE PER ROOMMonthly change
Sydney, NSW$5750.80%$7200%$3000%
Melbourne, VIC$4502.20%$4902%$2000%
Brisbane, QLD$5002%$5900.80%$2031.40%
Perth, WA$4500%$5403.70%$183-0.50%
Adelaide, SA$4000%$5000%$1770.50%
Hobart, TAS$4604.30%$5500%$200-6%
Darwin, NT$4906.10%$6001.60%$2094.30%
Canberra, ACT$5391.60%$6750.40%$2705.50%
National median$5000%$5500%$2260.40%
Source: 2022 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 has been on a rollercoaster ride in the past year, with the housing market remaining strong despite floods, a federal election, and pessimistic media predictions. Vacancy rates for houses and apartments have remained low at 0.97% nationwide, and the market has tightened further due to the return of tourism and overseas migration. Rising interest rates continue to pose a risk to the housing market, but the Reserve Bank of Australia’s slower hike pace may relieve consumers.

The Australian government’s recent budget has set a record high for the permanent Migration Program to address the skills shortage gap, making it the biggest immigration drive in the country’s history. This influx of people will further strain the rental market, but it will also make purchasing more attractive for strategic investors.

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?

The pandemic has made people rethink what is important in a home, emphasising the importance of proximity to work, play, and community, as well as space, security, and amenities. As we head into 2023, Australians will likely look for homes with more space, added security, the right amenities, and green space.

December 2022’s market data indicates that the median rent for apartments in Sydney and Melbourne were at $575 and $450, respectively, while Brisbane was sitting pretty at $500. As for houses, the median rent in Melbourne and Brisbane is $490 and $590, respectively. The price per room for both property types combined also saw a slight increase in these regions. Perth’s market is still steady, with the median house rent going up by 3.7% to $540.

Rental bidding is now banned in New South Wales. As of December 2022, it became illegal for real estate agents to ask tenants to offer higher rents. This move to curb unsolicited offers puts New South Wales in line with Victoria, Queensland, and Tasmania. But the Real Estate Institute of Western Australia argues that this ban won’t solve the state’s housing crisis.

The rental market in 2023 is shaping up to be a mixed bag. While increased migration from overseas is predicted to drive demand for rentals in popular areas like inner Melbourne and Sydney’s inner southwest, investors are unlikely to significantly boost rental supply due to high interest costs and reduced potential for profit. However, renters can expect to find more options available in the early months of 2023, as new listings are expected to increase during this time.

WHAT WILL A ROOM IN A RENTAL COST ME? 💰

Rent.com.au’s latest report shows that the apartment room prices in Sydney, Melbourne, Perth, and Canberra have seen the most significant jump, with Sydney leading the pack at a 17.2% increase in price per room.

The price per room metric offers an alternate outlook on the approximate cost to rent a room in a home in Australia. It can aid renters in finding affordable units, landlords set occupancy and pricing, and investors evaluate property performance before investing.

Hobart recorded the most significant percentage increase in rooms in houses at a staggering 49.2%. However, not all metropolitan areas saw such steep price increases.

Apartment prices in Adelaide have only increased by a modest 2.4%, and Hobart’s house prices have risen by 3.9%. The national median for apartment prices is $300 with a 17.6% increase, and houses have a median price of $183 with a 10% increase.

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

Metro areaAPARTMENTS% change (annual)HOUSES% change (annual)
Sydney, NSW$34017.20%$23310%
Melbourne, VIC$27719.40%$16510%
Brisbane, QLD$27512%$18310.00%
Perth, WA$28019%$16611.10%
Adelaide, SA$2112%$1677%
Hobart, TAS$36049.20%$2004%
Darwin, NT$27031.70%$1956.40%
Canberra, ACT$45048.50%$2180.80%
National median$30018%$18310%
Source: 2022 Rent.com.au property listing data

HOW ARE THE REGIONS FARING? 🌳

The Northern Territory had the most significant annual rent increase in December 2022. Even though it’s still the most expensive place to rent, it’s only by $75/week, with Sydney’s median rent still high at $500 and closing the gap.

According to the RAI report released in late 2022, regional renters struggle with internal migration. But the expected seasonal boost in new listings in the regions and metro areas in early 2023 should ease the pressure on vacancy rates and rents. Overall, regional rents rose 7.7% to $485/week on average.

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 December 2022

State/TerritoryDec-22% change from Dec '21
New South Wales$5004.1%
Victoria$4005.2%
Queensland$51013%
Western Australia$48213%
South Australia$3509%
Tasmania$4307.5%
Northern Territory$57515%
Aus. Capital TerritoryN/AN/A
National median$4858%
Source: 2022 Rent.com.au property listing data

HOW LONG ARE RENTALS TAKING TO LEASE?

Considering the monthly change in time on market (TOM) or time to lease (TTL) for Australia’s rental properties provides valuable insight for property owners and managers in several ways.

It goes some way to indicate how well a property is performing in the market, provides insight into overall rental market conditions and market trends, and helps landlords and property managers decide whether to lower the price or make some improvements in the property if the rental has been on the market for a long time.

Rent.com.au uses the average time on market measure to explain the movement in median rents across Australia. In December 2022, Brisbane apartments were hot property, leasing in just 11 days on average. Melbourne apartments saw the biggest change year-on-year, leasing 46% faster than the previous year.

As for houses, Perth was the fastest to lease in December, taking only 14 days on average. But, on the flip side, Darwin’s houses slowed down 33% annually.

Table 4: Monthly and annual change to time on market in December 2022

Metro areaAPARTMENTSMonthly changeAnnual changeHOUSESMonthly changeAnnual change
Sydney, NSW16 days11.4% slower36% faster21 days4.4% slower0% change
Melbourne, VIC16 days0.9% faster46% faster20 days4% faster8% faster
Brisbane, QLD11 days8% slower34% faster16 days10% slower11% slower
Perth, WA13 days4% slower24% faster14 days6% slower12% faster
Adelaide, SA13 days1% slower11% faster15 days1% slower7% slower
Hobart, TAS15 days19% slower7% slower15 days6% faster18% slower
Darwin, NT20 days0.5% faster30% slower21 days11% slower33% slower
Canberra, ACT21 days10% faster5% faster20 days4% faster2% faster
Source: 2022 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