Australian housing rents have soared at record levels over the past twelve months, the Real Estate Institute of Australia (REIA) announced this week.
The REIA’s latest Real Estate Market Facts report shows Sydney had the highest increase – a staggering 27.5% over the past year.
In the March quarter, the median rent for 3-bedroom houses increased in all capital cities throughout Australia, while the median rent for 2-bedroom ‘other dwellings’ increased in all capital cities except Adelaide and Canberra, where it remains stable.
REIA president Hayden Groves said that the figures reflect the recovery of house prices since the RBA began its record rate increases and highlight rental affordability as a looming challenge due to ongoing supply shortages.
“Policies that artificially limit market rents such as rent freezes would make this challenge significantly worse as landlords and bill to rent providers would inevitably quit the market”, he warned.
Groves added this is the highest annual increase since REIA records started in March 1994, with apartments in Sydney renting at $650 per week on par with a house in Canberra.
In the 12 months to the March quarter, the median house rent increased in all capital cities. Brisbane had the largest annual rise at 15.6% in this sector.
The median rent for 2-bedroom ‘other dwellings’ increased in all capital cities except Adelaide and Canberra where it remains stable. Melbourne had the largest growth over the quarter at 13%. In the 12 months to the March quarter 2023, the median rent for 2-bedroom ‘other dwellings’ increased in all capital cities.
For house rents in the March quarter, the 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.
Adelaide had the highest quarterly increase of 5.3% while Canberra had the lowest increase of 0.3%.
During the quarter, the average median rent for 2-bedroom ‘other dwellings’ increased to $543 per week, a quarterly increase of 8.2%. The median rent remained stable in Adelaide, Canberra and Hobart but increased in all other capital cities.
Groves said house price growth was more moderate with the average capital city median price increasing by 0.1% for houses but decreased 0.2% for other dwellings.
The average median house price for the eight capital cities increased to $952,648 over the quarter. The median house price increased in Sydney, Adelaide and Darwin, remained stable in Perth, but declined in Melbourne, Canberra and Hobart. Increases ranged from 0.4% in Adelaide to 3.7% in Darwin.
At $1,459,856 Sydney’s median house price continues to be the highest among the capital cities, 53.2% higher than the national median. At $550,000 Perth has the lowest median house price across Australian capital cities, 42.3% lower than the national median.
Over the 12 months to the March quarter, the weighted average capital city median house price decreased by 7.8%. For ‘other dwelling’ sales, the weighted average median price for the eight capital cities decreased to $623,398, a quarterly decrease of 0.2%.
At $758,664, Sydney’s median price for ‘other dwellings’ continues to be the highest among the capital cities, 21.7% higher than the national median. At $390,000, Darwin has the lowest median price, (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%.
