Capital cities see weakest rental growth since December 2021
The median weekly advertised rent in Australia reached $610 in the September 2024 quarter, up 1.7%, according to the latest data from PropTrack.
Its latest Market Insight report has shown a continued rise in rental costs, though the pace of growth has eased compared to previous quarters.
In capital cities, rents increased by 1.6% over the quarter, bringing the median to $640 per week. Regional rents saw a slightly larger increase of 1.9%, reaching $540 per week. Nationally, rents rose 7% year-on-year, marking the slowest annual growth since September 2021.
Annual rental growth in capital cities slowed to 6.8%, the weakest since December 2021, while regional areas recorded an 8% increase. Unit rents continued to outpace house rents, with unit prices growing by 9.1% over the year compared to a 6.9% rise in house rents. The gap between median unit and house rents has now narrowed to $20 per week.
Among individual markets, Hobart, regional New South Wales, and regional Tasmania were the only areas to experience stronger rental growth over the past year compared to the previous period.
Sydney remains the most expensive capital city to rent in, with the median rent unchanged at $730 per week during the quarter, representing a 5.8% increase year-on-year. Melbourne’s median rent, at $570 per week, was lower than all other capital cities except Hobart.
“While the cost of renting remains higher than a year ago, the pace of price growth has slowed,” said Cameron Kusher (pictured above), director of economic research at PropTrack. “This reflects an easing of rental market pressures, which we expect to continue.
“With more stock available for rent, and the cost of renting rising at a pace above inflation over recent years, the capacity to pay rent is now impacting demand.
“Although the pace of rental growth is slowing and more stock is available for rent, supply remains low. However, we anticipate more balanced conditions in the coming months.”
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