City rents soar, regions get reprieve – PropTrack

In 2023, rents surged in capital cities, particularly led by Sydney, Melbourne, and Perth, while regional renters found solace in stable rents since June, according to a fresh PropTrack report.

PropTrack’s latest Market Insight showed that the median advertised rents nationwide saw a 1.8% rise in the December quarter, reaching $580 per week. This reflected a 113.5% increase, equivalent to $60 per week, compared to the preceding year.

Within the capital cities, a robust 13.2% growth in rents was observed compared to the same period in the previous year, elevating them to $600 per week. Though still substantial, this represented the slowest pace of annual growth since early 2022.

Further scrutiny into the market revealed increases ranging from 15% to 17% in unit rentals in Sydney, Melbourne, and Brisbane over the past year. Perth, meanwhile, stood out with the fastest rent growth, posting a 66% increase compared to pre-pandemic levels, fueled by an incredibly low rental vacancy rate.

“Rental markets are extremely challenging for renters, with rents continuing to grow very quickly across much of the country amid strong demand and very low vacancy rates,” said Angus Moore (pictured above), PropTrack economist. “Renters in Sydney, Melbourne, and especially Perth are facing very strong growth.”

In contrast, regional rental markets exhibited a more tempered growth trajectory. Rents remained unaltered across regional areas in the December quarter, sustaining at $500 per week since June.

Despite the prevailing challenges, Moore offered a glimmer of hope.

“There are some signs that rent growth may be slowing, and some relief on the horizon,” he said. “While rents are still growing very quickly, rent growth in 2023 was slower across the combined capital cities compared to 2022.”

The regional perspective presented a slightly brighter outlook, as Moore noted that median advertised rents have remained consistent for two consecutive quarters, holding steady at $500 per week since June.

As the rental market braces for the traditionally busy month of January, the PropTrack economist predicted that renters will continue to contend with rising rents. Nevertheless, there is a sense of optimism, with signs that the pace of growth may be starting to ease, providing potential relief for tenants in the coming months.

Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.