A new report has found that weekly rental prices have risen, rising 4.7% in the three months ending in late December 2021, as supply hit all-time lows.
REA’s PropTrack rental report for January 2022 found that the rise is due to rental prices in the Australian region, which are 5% higher in the last quarter and 10.5% higher year on year. ‘other.
The report says new rental listings registered a monthly decline of 27.2% in December 2021 to reach the lowest number of new rental listings since April 2010, as demand continues to rise.
The report focuses on six key metrics: rental prices, rental yields, new rental listings, total number of rental listings, on-site rental days, and hired tenants per listing.
PropTrack’s director of economic research and author of the report, Cameron Kusher, said the national rental market is expected to remain tight over the coming months.
“With the reopening of international borders, it is likely that the coming months will see excess rental stock in city centers decline as migrants return and occupy these properties,” he said.
“Reopening the borders could pose other challenges, as the return of travelers, both nationally and internationally, causes landlords to consider moving their rental properties from long-term leases to short-term rentals.
“The current tight rental conditions are also expected to lead to further increases in rental rates. “
Main conclusions of the report:
- Weekly rents have increased in all capital cities and regional markets over the past year except Melbourne (-2.4%) and are unchanged in Sydney.
- Rental prices for homes jumped 2.2% in the quarter and 7% year on year. Unit rents only increased 1.2% in the quarter, but remained unchanged from a year ago.
- New rental listings recorded the largest year-over-year declines in WA (-26.9%), Melbourne (-19.3%) and SA region (-18.9%) , while the only regions to register increases were Darwin (12.1%), NT regional (13.4%) and Canberra (5.8%).
Despite the poor results for tenants, Kusher said people returning to the city could provide respite for regional areas.
“In regional areas, we can start to see some pressure subside as people move back to town or buy homes locally after renting for a while and deciding to stay,” he said.
“In a positive state for tenants, real estate investment will increase over the coming year. With more investors buying properties, this in turn will add to the rental supply and hopefully alleviate a part of soaring rental prices. “
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