Stay ahead of the game with Rent.com.au’s September 2023 report. Get the latest scoop on leasing trends, rental prices, affordability and market news across Australia’s metro and regional areas.
IN SUMMARY
- National median rent remained unchanged at $590 per week for apartments and increased by 2.4% to $615 per week for houses.
- Melbourne and Adelaide saw the biggest increases in median rent for apartments, with Melbourne up 2% and Adelaide up 2.3% month-on-month.
- Darwin recorded the biggest decrease in median rent for apartments and houses, with apartments down 5% and houses down 3.8% month-on-month.
- Canberra also saw decreases for median rent for both apartments and houses, with apartments down 5% and houses down 6.7% month-on-month.
- Overall, the Australian rental market remains very tight, with demand for rental accommodation outstripping supply.
VACANCY RATE CHANGES
- NSW: Availability DOWN by 9.9%
- VIC: Availability DOWN by 1.9%
- QLD: Availability DOWN by 6.3%
- WA: Availability DOWN by 7%
- SA: Availability DOWN by 10.7%
- TAS: Availability DOWN by 4.6%
- NT: Availability UP by 8%
- ACT: Availability DOWN by 5.7%
Table 1: Median rent (apartments v houses) and price per room
| Metro area | APARTMENTS | Monthly change | HOUSES | Monthly change | PRICE PER ROOM | Monthly change |
|---|---|---|---|---|---|---|
| Sydney, NSW | $650 | 0% | $800 | 0.00% | $350 | 0.00% |
| Melbourne, VIC | $510 | 2% | $550 | 1.80% | $225 | 2.20% |
| Brisbane, QLD | $550 | 0.00% | $625 | 1.60% | $216 | 0.50% |
| Perth, WA | $550 | 5.50% | $600 | 0.00% | $200 | 0% |
| Adelaide, SA | $440 | 2.30% | $550 | 3.60% | $196 | 0.50% |
| Hobart, TAS | $435 | -3% | $550 | 0.00% | $200 | 4.00% |
| Darwin, NT | $480 | -8.80% | $650 | -3.80% | $220 | -0.50% |
| Canberra, ACT | $500 | -5.00% | $600 | -7% | $250 | 2.40% |
| National median | $590 | 0.00% | $615 | 2% | $262 | 1.90% |
| Source: 2023 Rent.com.au property listing data |
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PRICE TRENDS 📈
What’s being talked about?
Australia’s national median rent remained relatively stable in September, with some variation across the country. The overall rental market remained very tight, with demand outstripping supply. The most significant month-on-month change (positive) was in Perth, WA, where the median rent for apartments increased by 5.5% to $550 per week. Conversely, the most significant month-on-month change (negative) was seen in Darwin, NT, where median rent for apartments decreased by 8.8%.
In September, the median rent for apartments was $435 per week in Hobart, TAS, the cheapest place to rent an apartment. The most expensive city to rent an apartment is Sydney, NSW, where the median rent is $650 per week. The cheapest place to rent a house is Adelaide, SA, where the median rent is $550 per week. The most expensive place to rent a home is Canberra, ACT, where the median rent is $600 per week.
Housing in Australia is a hot topic, with ongoing discussions centred around making it more affordable. The lack of housing supply is a significant concern, as the demand for rental properties is increasing while building approvals and commencements are decreasing. The collapse of construction companies and a shortage of tradies have also contributed to the slow pace of new builds. Natural disasters have further impacted the housing market, with local governments assessing the resilience of houses to fire and flood.
In September, the Victorian state government released a plan to boost housing supply and lower prices. The plan includes building 800,000 new homes in Victoria over the next decade and reforms to the approval process. The government plans to rebuild all of Victoria’s public high-rise towers by 2051, with the first five replaced by 2031. The rebuild is expected to triple the number of residents who can live in the state’s public housing towers from 10,000 to 30,000.
A new website launched by social media creator Jordan van den Berg allows tenants to share reviews of their rental properties and real estate agencies. The website aims to shed light on the living conditions many Australians face during the current rental crisis. InvestorKit data suggests that many tenants across Australia will face higher rents in the coming year, with the hardest-hit areas predicted to see increases between $2,600 and $3,990 annually. Sydney and Melbourne are expected to experience rent hikes between 10% and 15%.
Australia’s capital cities are experiencing a solid rebound, with increasing migration, the return of international students, and Australians returning to CBDs. This year, internal migration is also a trend, with Queensland, Western Australia, and South Australia proving popular due to employment opportunities and lifestyle factors.
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WHAT WILL A ROOM IN A RENTAL COST ME? 💰
The price per room for apartments and houses in Australia increased in most major cities in September 2023, except Hobart and Darwin. The national median price per room for apartments increased by 16.7% year-on-year to $350, while the national median price per room for houses increased by 11.1% year-on-year to $200.
A tenant in Sydney paying $400 per week for a room in a shared apartment in September 2022 is now paying $456 per week, an increase of $56 per week. A landlord in Melbourne renting out a room in their house for $310 per week in September 2022 is now renting it out for $353 per week, an increase of $43 per week.
Rising room prices are making it more difficult for tenants to afford to rent in Australia. It is also putting pressure on landlords, as they face higher borrowing costs and maintaining their rental properties. When you find a property you like, start your house hunt early and act quickly. Be flexible with your budget and location requirements, and consider renting a room to save money.
| Metro area | APARTMENTS | % change (annual) | HOUSES | % change (annual) |
|---|---|---|---|---|
| Sydney, NSW | $400 | 14.30% | $263 | 12.90% |
| Melbourne, VIC | $310 | 14.80% | $178 | 16% |
| Brisbane, QLD | $325 | 18.20% | $193 | 10.50% |
| Perth, WA | $320 | 18.50% | $190 | 16.90% |
| Adelaide, SA | $223 | 6.50% | $186 | 13.30% |
| Hobart, TAS | $220 | -17.00% | $196 | 3.50% |
| Darwin, NT | $231 | 2.80% | $186 | -2.60% |
| Canberra, ACT | $425 | 28.80% | $216 | 2.00% |
| National median | $350 | 16.70% | $200 | 11.10% |
| Source: 2023 Rent.com.au property listing data |
HOW ARE THE REGIONS FARING? 🌳
Regional rents in Australia continued to rise in September 2023, with the national median rent increasing by 8.3% year-on-year. All states and territories recorded annual rent increases, with the most significant increases seen in Western Australia (15.7%), South Australia (17.6%), and the Northern Territory (18.3%). Regional rents in New South Wales and Tasmania rose by 6% and 5%, respectively, while rents in Victoria and Queensland increased by 7.6% and 10% respectively.
Several factors are driving tight rental market conditions in regional Australia. These factors include strong demand from renters, as more people opt to live in regional areas due to lifestyle factors and affordability. Additionally, a shortage of rental supply exists because investors have been selling off their rental properties in recent years. Rising interest rates are also making it more expensive for investors to borrow money to purchase rental properties.
Regional rents are expected to continue to rise in the coming months due to high demand for rental accommodation and tight supply.
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Table 3: % change to regional rents in September 2023
| State/Territory | Sep-23 | % change from Sept '22 |
|---|---|---|
| New South Wales | $530 | 6% |
| Victoria | $420 | 7.60% |
| Queensland | $550 | 10% |
| Western Australia | $550 | 15.70% |
| South Australia | $400 | 17.60% |
| Tasmania | $420 | 5.00% |
| Northern Territory | $580 | 18.30% |
| Aus. Capital Territory | n/a | n/a |
| National median | $520 | 8.30% |
| Source: 2023 Rent.com.au property listing data |
HOW LONG ARE RENTALS TAKING TO LEASE? ⌛
The latest data shows that the Australian rental market remains very tight, with demand for accommodation outstripping supply, leading to a shorter time on the market for both apartments and houses in many state and territory capitals.
Sydney apartments leased 6% faster in September 2023 than in August 2023 and 3% faster than in September 2022. Perth apartments leased 12% faster in September 2023 than in September 2022, and Melbourne houses leased 13% faster in September 2023 than in September 2022.
These highlights indicate that Sydney, Perth, Adelaide, and Melbourne have particularly tight rental markets. Tenants in these cities may need to commence their search early and be prepared to act swiftly when they find a property they like.
Table 4: Monthly and annual change to time on market in September 2023
| Metro area | APARTMENTS | Monthly change | Annual change | HOUSES | Monthly change | Annual change |
|---|---|---|---|---|---|---|
| Sydney, NSW | 16 days | 6% faster | 3% faster | 20 days | 3% faster | 6% faster |
| Melbourne, VIC | 19 days | 2% slower | 6% faster | 19 days | 9% faster | 13% faster |
| Brisbane, QLD | 14 days | 2% faster | 13% slower | 17 days | 10% faster | 13% slower |
| Perth, WA | 13 days | 7% faster | 12% faster | 14 days | 5% faster | 5% faster |
| Adelaide, SA | 13 days | 4% faster | 11% faster | 16 days | 5% faster | 1% faster |
| Hobart, TAS | 28 days | No change | 33% slower | 22 days | 4% slower | 24.% slower |
| Darwin, NT | 20 days | 5% faster | 42% slower | 21 days | 15% faster | 20% slower |
| Canberra, ACT | 26 days | 11% slower | 28% slower | 28 days | No change | 27% slower |
| Source: 2023 Rent.com.au property listing data |
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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.
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