This article is from the Australian Property Journal archive
HOUSING rents have seen massive hikes over the last 12 months, with Sydney seeing an annual increase of 27.5%.
According to REIA’s latest Real Estate Market Facts report, the 2023 March quarter recorded its highest annual increase since records began in March 1994, with Sydney unit rents at $650/week, which is on par with rents for a house in Canberra.
“The numbers demonstrate the recovery of house prices since the RBA began its rapid rate increases and highlight rental affordability as a looming challenge due to ongoing supply shortages,” said Hayden Groves, president at REIA.
Over the quarter and over the year, the median rent for a three-bedroom house was up across all capital cities, with Brisbane recording the largest annual rise in this category, at 15.6%.
“For house rents in the March quarter, the weighted average median rent for 3 bedroom homes in the eight capital cities increased to $536 per week, a quarterly increase of 3.9%. The median rent for 3 bedroom houses increased in all capital cities,” added Groves.
With Adelaide recording the highest quarterly increase at 5.3%, while Canberra recorded the lowest increase of 0.3%.
For two-bedroom units, the median rent increased in all capitals, excluding Adelaide and Canberra where it held stable. While annually rents increased across all capitals in this category.
Melbourne recorded the largest growth over the quarter for two-bedroom units, at 13%.
“During the quarter, the weighted average median rent for 2 bedroom other dwellings increased to $543 per week, a quarterly increase of 8.2%,” added Groves.
“The median rent remained stable in Adelaide, Canberra and Hobart but increased in all other capital cities.”
Groves noted house price growth was more tempered, with the weighted average capital city median price up 0.1% for houses and down 0.2% for other dwellings.
The weighted average median house price for the eight capital cities was up to $952,648 over the quarter.
At $1,459,856, Sydney’s median house price remains the greatest amongst the capital cities, sitting 53.2% above than the national median.
While at $550,000, Perth has the most affordable median house price amongst capital cities, sitting 42.3% below than the national median.
In the 12 months to the March quarter, the weighted average capital city median house price dropped 7.8%.
With the other dwelling weighted average median price for the capital cities down to $623,398, a quarterly drop of 0.2%.
At $758,664, Sydney’s median price for other dwellings also remains the highest amongst the capital cities, sitting 21.7% higher than the national median.
While at $390,000, Darwin has the most affordable median price for other dwellings across Australian capital cities, sitting 37.4% lower than the national median.
Over the 12 months to the March quarter, the weighted average median price for other dwellings for the eight capital cities decreased by 4.8%.
