RESIDENTIAL PROPERTY
WHILE 2022 saw record levels of annual rent growth at 10.2%, a seasonal boost to stock and affordability constraints may signal market easing.
According to CoreLogic’s Q4 2022 Quarterly Rental Review, Australia’s rental market growth has slowed for the second consecutive quarter,
“The decline in quarterly rental growth rates observed in the December quarter was led by the capital cities where rents continued to...
“While a slowdown in the pace of rent rises could be a sign that the rental market is starting to shift, it’s not great news for tenants just yet.
Australian rent values are up 22.2% since the beginning of the upswing in September 2020, with median weekly rents over this period rising from $430/week to $519/week.
The slowing growth rate also comes as the national rental vacancy rate saw a slight uptick in December to 1.17%, from November’s 1.05%.
New advertised rental listings saw a seasonal peak in the four weeks to 11 December, with 50,867 new listings or the highest volume since mid-February 2022.
Over the quarter, Canberra recorded a 0.7% decline in dwelling rents, for a 0.8% decline in house rents and a 0.2% decline in...
Darwin followed with a 0.3% decline in house rents over the quarter, with a combined quarterly increase at 0.3%, down from 3.6% in the June quarter.
Adelaide’s growth over the quarter slowed by 220 basis points at 1.4%, with Brisbane slowing by 160 basis points and both Sydney and Melbourne slowing by 20 basis points.
Canberra is still the country’s most expensive capital city to rent in, with a median weekly rental value of $681, followed by Sydney at $679 and Darwin $594.
While Melbourne remains Australia’s most affordable capital city for rentals at $507/week, followed by Adelaide $518/week, Hobart $552/week, Perth $553/week and Brisbane $588/week.
The gap between house and unit rent is narrowing, as growth in Australia’s unit rents was at 2.8% in the December quarter, with house rents rising by 1.7%.
“On the flip side investor activity, and therefore rental supply, is not expected to pick up substantially in the year ahead.