Property leasing data released by Rent.com.au for July 2018 illustrates the shift in Australian median rental property prices (both metro and regional) and rental affordability (the median room price metric).

Report Highlights:

  • Year-on-year, houses in Sydney have slowed more significantly than in any other capital: It took 27 days on average to move a house in July, 22% slower than in July 2017.
  • Canberra metro was the only state capital to see median rents fall across both property types in July.
  • Six out of eight state/territory capitals now have median rents (houses) above $400/week.
  • The most significant rise in the cost of rooms (apartments) was in Hobart, up 20% year-on-year to $240/week.

LOOKING TO RENT YOUR FIRST HOME OR PURCHASE AN INVESTMENT PROPERTY THIS YEAR?

BEING INFORMED ABOUT THE AUSTRALIAN RENTAL MARKET IS VITAL WHEN DECIDING ON YOUR NEXT MOVE. RENT.COM.AU HAS PULLED TOGETHER THE LATEST PROPERTY TRENDS FOR EACH CAPITAL CITY.

How the states and territories compared in July 2018
Median rent (apartments v houses) and price per room
SOURCE: RENT.COM.AU © 2018

Metro area Apartments % change Houses % change Price per room % change
SYDNEY $540 ↓1.8% $600 0% $270 ↓1.8%
MELBOURNE $410 0% $420 0% $175 ↑0.5%
BRISBANE $400 0% $420 0% $160 ↓0.6%
PERTH $320 0% $360 0% $123 ↑2.5%
ADELAIDE $300 ↑5.3% $375 ↑1.4% $133 ↑2.3%
HOBART $340 ↑2.3% $450 ↑4.7% $158 ↑1.2%
DARWIN $380 ↑6.3% $480 ↓2% $156 ↓1.8%
CANBERRA $420 ↓5.6% $500 ↓5.7% $205 ↑7.8%
National median $450 0% $430 0% $185 0.9%

PRICE TRENDS

Median Rents

Across Australia’s states and territories, rents remained flat in July 2018. Canberra metro was the only Australian capital to record a decrease in the median rent across all property types, with a 5.6% fall in apartment prices to $420 a week, and a 5.7% fall to $500 a week for houses.

Leah Bates, Property Manager with LJ Hooker Woden said July has shown the market for re-letting has slowed dramatically, indicating more tenants are wanting to secure their current rental for a further fixed term. “Out of nine properties leased this month at LJ Hooker Woden, eight have been new business properties and only one has been a re-let,” she said. “We’re still experiencing a high volume of applicants; it has become a very competitive market.”

Property Manager with Cornerstone NewActon, Tori Russell said their office had seen a rise in the price of one-bedroom apartments within the city, specifically the NewActon area (averaging $450 a week). “Though our apartment prices have risen, we’ve seen a growing demand in the area for renters, with apartment listings being rented within the first week,” she said.

In July, there was no change in median rent for three out of five of Australia’s biggest states (Melbourne, Brisbane and Perth) in either apartments or houses. Six out of eight capitals are now seeing median rents above $400 a week (houses) – just Perth and Adelaide have maintained cheaper prices. Sydney rents are still high (no great surprise) but cooling demand could be behind the stabilising cost of some property types. Apartment median rents for Sydney metro came down 1.8% in July to $540 a week, while house prices remained unchanged for the seventh consecutive month.

Rent.com.au Chief Executive Officer, Greg Bader said this slowdown was having the effect of creating both a buyer’s and a renter’s market. “The pace is changing for New South Wales,” he said. “The cooling sales market in Sydney is putting pressure on landlords to consider stabilising or even reducing their rent.”

Price Per Room

Renters looking to score a good deal on an apartment would have found their best options in Darwin in July (just $155 a week for a room), against $115 a week in Perth for a room in a house. Nationally, Perth was the shared accommodation bargain at just $123 a week for all property types, closely followed by Adelaide ($133 a week) and Darwin ($156 a week). The metric also showed that Sydney once again outranked all other state/territory capitals at $270 a week for a single room (national price per room).

Price per room year-on-year: Apartments v Houses
SOURCE: RENT.COM.AU © 2018

Metro area Apartments % change from July 2017 Houses % change from July 2017
SYDNEY $320 ↓1.5% $197 ↓1.5%
MELBOURNE $275 ↑7.8% $136 ↑2.2%
BRISBANE $240 ↑10.7% $133 ↑1.5%
PERTH $186 ↓0.5% $115 ↑4.5%
ADELAIDE $160 ↑6.6% $123 ↑2.5%
HOBART $240 ↑20% $148 ↑8.8%
DARWIN $155 ↓6% $158 ↑8.9%
CANBERRA $340 ↑13.3% $175 ↑7.6%
National median $275 3.7% $143 4.3%

PRICE TRENDS

Regional Rents

Median rents across Australia’s regional areas remained mostly stable in July, consistent with data from June. The only fall in regional prices this month was in the Northern Territory, down 8.3% to $440 a week. Properties in the NT’s regions are still yielding high rental amounts with the weekly price unchanged at $400/week. For renters, this means no relief in sight as the territory remains the most unaffordable of all capitals. Prices rose in the regions in just two states/territories: Western Australia (up 3.1%) and Tasmania (up 5.3%).

Regional Rents
% change between June 2018 and July 2018
SOURCE: RENT.COM.AU © 2018

State/Territory June 2018 July 2018 % change
NSW $400 $400 0%
VIC $300 $300 0%
QLD $360 $360 0%
WA $330 $320 ↑3.1%
SA $265 $265 0%
TAS $280 $295 ↑5.3%
NT $480 $440 ↓8.3%
ACT unavailable unavailable unavailable
National median $360 $360 0%

Days on Market

Most significant slowdown in Darwin, with a 21% increase in time on market month-on-month to 39 days for apartments. Year-on-year, houses moved 22% slower in Sydney, taking some 27 days to move on average. Trends were different in Hobart, which saw houses move 14.2% faster month-on-month, taking just 18 days to shift in July.

Days on market
% change in no. days on market (Apartments v Houses)
SOURCE: RENT.COM.AU © 2018

Metro area APARTMENTS days on market July 2018 % change from June 2018 % change from July 2017 HOUSES days on market July 2018 % change from June 2018 % change from July 2017
SYDNEY 27 days 4% slower 35% slower 27 days 4% slower 22% slower
MELBOURNE 20 days 1% slower 5% faster 24 days 4% slower 4% slower
BRISBANE 24 days 4.3% faster 14% faster 24 days 4% slower 7% faster
PERTH 37 days 5.1% faster 15% faster 35 days 4% slower 14% faster
ADELAIDE 25 days 3.8% faster 19% faster 25 days 4% faster 7% faster
HOBART 15 days 5% slower 12% faster 18 days 14.2% faster 5% faster
DARWIN 39 days 21% slower 9% faster 35 days 2% slower 22% faster
 CANBERRA 15 days 6.2% slower 6% faster 18 days 5.2% faster 10% faster
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