After a long period of slow or no rental growth it looks like Australia's rental markets are on the move again.
Rent.com.au latest market update for the month of June 2019 illustrates the shift in Australian median rental property prices (both metro and regional), rental affordability (the median room price metric) and days on market.
Rent.com.au Rental Snapshot Highlights:
- Median apartment rents rose in five of eight metro areas in June; prices were up 5.7% in Canberra, 2.4% in Melbourne, 1.7% in Adelaide, 1.5% in Perth and 1.3% in Brisbane.
- Despite no change to its house prices, Canberra was the strongest performer of all state/territory capitals, with rents up 5.7% to $465/week.
- The country’s national median regional rent saw its first change since October 2017 – up 1.3% to $375/week, driven by movement in the larger states.
- Adelaide apartment room prices saw the most significant increase of all metro areas month-on-month – up 13.1% to $172/week.
- Across all property types, Perth was the cheapest place to rent a room in January at $133/week.
Table 1: Median rent (apartments v houses) and price per room
|Metro area||Apartments||% change||Houses||% change||Price per room||% change|
The national median rent was unchanged in June for both apartments and houses at $450/week and $440/week respectively.
The strongest-performing capital cities were Canberra, where apartment prices jumped 5.7% to $465/week, and Melbourne, where apartment rents were up 2.4% to $420/week.
Falls could be seen in Hobart and Darwin across all property types.
In the Tasmanian capital, apartment prices fell 1.4% to $350/week and houses were down 6.3% to $450/week, while up north in the Northern Territory, Darwin apartment rents dropped 5.7% (now $330/week) and 2.2% to $440/week for houses.
Brisbane was the only metro capital to record a consistent increase in price across both property types in June – rents were up 1.3% to $400/week (apartments) and 1.2% to $430/week (houses).
The most affordable homes could be found heading further west, with houses cheapest in Perth ($370/week) and in Adelaide for apartments ($300/week).
Price per room.
Rent.com.au’s price per room metric offers another way to look at the cost of renting in Australia, particularly for people looking to share a home and save money.
According to the latest data, Darwin was the most affordable Australian capital for home hunters looking to rent an individual room in an apartment at $155/week.
Meanwhile, Perth retained its lead as most affordable room prices in houses at $122/week.
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In June, Adelaide apartment room prices rose 13.1% to $172/week – the most significant increase of all state and territory capitals.
Sydney and Canberra recorded a decrease in the price per room for both apartments and houses in June, dropping 4.7% and 0.2% respectively month-on-month.
Considering affordability, apartments led the charge in June with the bulk of pricey rooms being apartments: Canberra ($320/week), Sydney ($305/week) and Melbourne ($275/week).
Table 2: Price per room (Apartments versus Houses)
|Metro area||Apartments||% change from JUNE 2018||Houses||% change from June-18|
For the first time since October 2017, the national median regional rent spiked 1.3% to $375, largely driven by movement in the larger states.
South Australia regional rents saw the most significant change month-on-month, up 3.7% to $280/week., closely followed by movement in Tasmania (up 3.3% to $310/week) and Victoria (up 3.2% to $320/week).
Rents in the Northern Territory remain the most expensive across Australia at $420/week.
Table 3: Regional rents in June 2019
|State/Territory||Jun-19||% change from May ‘19|
Time on market.
Rent.com.au’s average time on market measure provides context to the movement in asking rents across the country.
Overall, houses were quicker to come off market in June than apartments, with four of eight capitals seeing houses lease faster month-on-month (Brisbane – 8%, Melbourne – 5%, Perth – 1% and Canberra – 1%). Despite a 5% slowdown in Hobart, houses leased quicker in the Tasmanian capital than in any other state or territory, averaging 17 days.
Of the five largest states, Perth has seen the most significant change in leasing time year-on-year, with apartments in June this year leasing 21% faster than they were in June 2018.
Table 4: Days on market
Source: Rent.com.au Australia's #1 website dedicated to rental property