Property leasing data released by Rent.com.au for May 2018 illustrates the shift in Australian median rental property prices (both metro and regional) and rental affordability (the median room price metric).
- Apartment prices in Sydney, NSW have not been this high ($550) since October 2017, jumping 1.9% to $550 a week from April to May 2018.
- The price per room in Adelaide, SA is now the highest it has been since July 2015. May saw the first rise in prices, jumping upward by 3.85%.
- Perth, WA remains the most affordable option for renters looking for shared accommodation ($120)
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How the states and territories compared in May 2018
|Metro area||Apartments||% change||Houses||% change||Price per room||% change|
Across Australia’s states and territories, rents remained relatively flat in May. Sydney rents are still high (no great surprise) but cooling demand could be behind the stabilising cost of some property types. Apartment median rents were flat in May, rising by just 1.9%, while house prices remained unchanged. Perth recorded the most significant decrease in median rents in May, dropping 2.6% to $350 a week.
Rent.com.au Chief Executive Officer, Greg Bader said house prices have now been stable in Sydney for five months since December 2017. “Irrespective of this stability, Sydney remains unaffordable to significant proportions of the renting population – especially in very low and low-income households,” he said. “However, prices aren’t rising the way they were; the boom phase of the market is fading, and it’s likely down to first-home buyer incentives and a deluge of new apartments on the market.”
Property Manager with MMJ Real Estate, Laura McDiarmid said their office in Dapto, NSW had seen a string of interesting changes in the rental market across the Illawarra. “With a large number of properties available, it has given tenants more options to choose from,” Laura said. “As tenants now have many properties matching their needs, we’ve seen the urgency to secure a property immediately drop a little, and properties are remaining vacant for longer. Tenants are really taking their time to make sure it’s the ideal home for them and their family.”
“This hasn’t really affected some pricing though, which is a good sign. Some properties are needing to make relevant adjustments to suit the lower demand. However, we are seeing quality properties still commanding strong rents. This is a positive sign for landlords and prospective landlords. It also indicates that to have some separation from the rest of the market, a little TLC can go a long way and prove to be an investment rather than a cost.”
Price Per Room
Renters looking to score a good deal on an apartment would have found their best options in Adelaide (just $150 a week for a room), against $116 a week in Perth for a room in a house. Nationally, Perth was the shared accommodation bargain at just $120 a week for all property types, closely followed by Adelaide ($135 a week) and Brisbane ($153 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
|Metro area||Apartments||% change from May 2017||Houses||% change from May 2017|
Median rents across Australia’s regions remained mostly stable in May, consistent with data from April. New South Wales, Western Australia and the Northern Territory recorded a decrease in their median rent month-on-month, down 1.3% (NSW), 2.2% (WA) and 6.1% (NT). 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.
|State/Territory||April 2018||May 2018||% change|
Days on Market
Rent.com.au’s average days on market measure provides context to the movement in asking rents. Days on market in Perth improved significantly in May, taking 16.8% less time to move an apartment than 12 months prior in May 2017. Trends were similar in Darwin, where houses shifted quicker under a wave of continued rental demand, slowing movement to 33.9 days. In Brisbane, apartments moved 14.4% faster (27.4 days) and houses 7.6% faster. Mr Bader said this movement across several capitals was indicative of healthy leasing activity prompting increased demand. “This is good news for property owners and investors who are seeing their vacancy time reduced,” he said.
Days on market
|Metro area||APARTMENTS days on market||% change from April||% change from May 2018||HOUSES days on market||% change from April||% change from May 2018|
|SYDNEY||23||1% faster||16.2% slower||25.1||7% faster||14% slower|
|MELBOURNE||19.1||2% slower||4.8% faster||21.8||6% faster||5.2% faster|
|BRISBANE||27.4||2% faster||14.4% faster||26.6||5% faster||8.3% faster|
|PERTH||39.1||19% slower||16.8% faster||37.2||3% slower||13.9% faster|
|ADELAIDE||24.9||14% faster||16.3% faster||25||5% slower||7.6% faster|
|HOBART||16.8||6% faster||5.3% slower||19.9||5% slower||10.6% slower|
|DARWIN||42.4||19% slower||16.3% slower||33.9||17% faster||16.3% faster|
|CANBERRA||15||7% slower||24.2% faster||19||10% slower||4.3% faster|
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 14 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. More than 83,000 properties are available to rent from 5,000 agents and private landlords. Renters have created 1.12 million Renter Resumes on the website to date.