RESIDENTIAL PROPERTY
THE outlook remains gloomy for Australia’s renters, with apartment rents forecast to grow by 30% across Australia’s major cities by 2028.
According to CBRE’s Apartment Rent and Vacancy Outlook, five major Australian markets may raise by record levels, surging with mid to high 30%...
Across the 53 precincts examined in the report, median rent for two-bedroom apartments are anticipated to grow by $120/week or 26% between...
Growth of greater than 30% is forecasted for Sydney’s Eastern Suburbs, Parramatta, Melbourne North, Perth City and almost all precincts in Brisbane...
“At the start of 2013 just four precincts in Australia had an average rent of over $600/week for two-bedroom apartments, being the Sydney and Perth CBDs...
“By June this had grown to 20 precincts and by 2028 we expect 38 precincts – or over 70% of Australia’s two-bedroom apartments – to have a rent...
To offset the impacts of low vacancies, around 75,000 new apartments per annum would need to be injected into the market...
Unfortunately, new stock is currently falling short at just circa 60,000 in 2024 and 2027 or 40% under the 2017 peak...
“Australia’s monthly apartments rents are currently 30% cheaper than purchasing at current prices across most precincts,” added Chopra...
“The reversion of interest rates to say 2%-2.5% could see this relative rental affordability remain as capital values rise.”..
In Sydney, apartment supply is expected to increase by 14,000 on average per annum over the 2024-2028 period, compared to the needed 33,000 per...
The vacancy rate in Sydney is expected to fall from 2.2% to 0.8%, with average rent growth of 6% each year to 2028...
In Melbourne, apartment delivery is averaging just 10,000 per annum over the same period or almost 40% below Sydney levels and far below demand for...
In Brisbane, apartment delivery is set to average 6,500 per annum over 2024-2028, with demand likely to average 16,500 per annum. Driving down vacancies from...