This article is from the Australian Property Journal archive
SEPTEMBER may have marked the early stages of much anticipated change in the rental market, though even with slowing price growth and mounting supply renters are yet to catch a real break.
According to the latest data from PropTrack, Australia’s national median rents were up by 7% annually, reaching $610 per week in September.
This reflects are significant slowdown from the same time last year, when growth was at twice the rate at 14% and is also the slowest annual growth recorded since September 2021.
“Annual rental growth slowed in September, rising at half the rate compared to a year ago. However, at 7%, annual growth of advertised rents still outpaced inflation, making it difficult for renters to afford properties,” said Cameron Kusher, director of economic research at REA Group.
“In response to higher rental costs, tenants may look to reduce the size of their rental, move to a less desirable location or share their rental property with others to reduce the cost. This was evident across the country, where more affordable rental markets in outer areas and regions have typically seen stronger rental growth, lower supply and higher demand, while higher priced inner-city markets typically saw lower rental growth, higher supply and lower demand.”
The combined capital cities median rent was up 1.6% over the quarter and 6.8% annually to $640/week.
While regional rents outpaced their metropolitan counterparts, with 1.9% growth over the quarter and 8% over the year to $540/week.
The national rental vacancy rate was down to 1.3% in September, from 1.4% in June 2024, though still up on the 1.2% recorded a year back.
The capital city rental vacancy rate was at 1.4% in September, while the regional market combined rate was at 1.1%.
“The challenging rental conditions have also likely encouraged more renters with the means, to exit the rental market and purchase their own property. However, this is not possible for a large cohort of renters,” added Kusher.
Hitting the highest levels since September since 2021, new rental listings on realestate.com.au were up 8.6%.
With the total number of properties listed up 10.2% on levels recorded this time last year, for the greatest annual increase since June 2014.
Annually, new and total listings were up 11.9% and 14.6% respectively in capital cities and down 0.4% and 1.2% in the regions.
At the same time, the average number of enquiries per listing was down 11.7% nationally to 22 enquiries over the year to September.
With enquiries per listing across the capital cities dropping 19.1% annually to 23 enquiries.
Also indicating slowing demand, the median days a rental remains listed has increased to 21 days from 19 days a year earlier.
“As rental growth has slowed and supply increased, the market appears to be beginning the transition from one that was strongly in favour of landlords towards more balanced conditions. Even so, the market remains much tighter compared to prior to the pandemic and we expect rents to maintain an upward trend and supply to remain low on an historic basis,” said Kusher.
