Domain’s September Rental Report has shown there is little consistency across the states and territories, with prices hitting all-time highs in some capitals, while rent declines severely in others.
In Sydney, the median asking rent for units has dropped 4.8 per cent since March to $495 a week – “the deepest decline over two consecutive quarters in at least 16 years,” according to the report.
House rents are on the rise, however, having increasing by $10 a week to a median of $540.
“Since the pandemic hit, we’ve seen a dramatic divergence of house and unit rents,” said Domain senior research analyst Nicola Powell.
Melbourne unit rents dropped another $15 a week over the September quarter, with asking rents $30 a week lower than the March peak, before the pandemic. The median weekly asking rent now sits at $400 a week, the lowest in roughly three years.
Melbourne’s inner-ring saw unit rents fall by $65 a week, marking the deepest fall over two consecutive quarters on record. (Domain’s Rental Report launched in 2004.)
House rents have reversed the fall recorded last quarter, pushing to $440 a week.
“It may also reflect changing preferences,” the report notes, “as tenants seek larger homes and outdoor space in outer-suburban areas.”
Adelaide rents hit a record price over the September quarter, at $405 a week for houses and $340 for units. Rental prices have recorded the highest annual growth since 2007 for units, and 2010 for houses.
Brisbane unit rents are tipped to overtake Melbourne in regards to price. Both house and unit rents are now at record highs, with a $15 rise a week over the September quarter. House rents are now at $415 and unit rents $395 a week.
Perth’s rental market has completely turned around, with house rents up $25 to $395 a week (the highest since early 2016), while units are at mid-2016 rents, increasing by $20 to $340 a week.
Hobart’s house rents remain stable, but still sit $20 a week below the March high. Unit rents have risen, but only regained half the losses incurred during the June quarter. Unit rents are now $400 a week.
Canberra rents are back to pre-pandemic prices. Canberra is Australia’s most expensive city to rent a house, at $580 a week, and second most expensive to rent a unit, at $480, behind Sydney.
Finally Darwin is slowly recovering from the post-mining boom, with unit rents increasing annually for the first time since mid-2014, with houses remaining stable over the year, for the first time since late 2017.
Both increased by $10 over the September quarter to $490 a week for houses and $390 for units.