Weekly rent for a three-bedroom house in Brisbane has experienced the highest annual increase this century, with little relief in sight for renters according to fresh data.
The Real Estate Institute of Australia (REIA) Market Facts report released today shows that in the December quarter the median rent for a three-bedroom house increased 2 per cent in Brisbane to $510 per week.
Annually, rents rose 21.4 per cent, which is the highest annual hike since the start of this century.
Over the December quarter, the median rent for three-bedroom houses increased in Brisbane Inner (1.5 per cent) and Brisbane Outer (2.2 per cent), but remained stable in Brisbane Middle.
In regional Queensland, rents increased on the Gold Coast (6.2 per cent) and in Townsville (5 per cent).
Over the past year, the median rent for three-bedroom houses increased in all Brisbane areas: Brisbane Inner (10 per cent), Brisbane Middle (12.2 per cent) and Brisbane Outer (16.5 per cent).
In regional Queensland, it increased both on the Gold Coast (20 per cent) and in Townsville (10.5 per cent).
Brisbane’s annual median rent increase for three-bedroom houses was the highest of the capital cities, closely followed by Perth, which experienced a 15.1 per cent annual increase.
Perth also had the highest median rent hike for the December quarter, climbing 5.3 per cent to $495 per week for a three-bedroom house.
REIA President Hayden Groves said there was no relief in sight for renters as prices continue to rise due to a chronic housing shortage.
“In the December quarter, the median rent for three-bedroom houses increased in Melbourne, Brisbane, Adelaide, Perth and Darwin, remained stable in Sydney and decreased in Canberra and Hobart,” he said.
“The largest quarterly increase was 5.3 per cent in Perth.
“In the 12 months to the December quarter, the median rent increased in all capital cities.
“Brisbane had the largest annual increase (21.4 per cent), the highest annual increase this century.”
Meanwhile, the weighted average vacancy rate for the eight capital cities remained stable at 1.7 per cent over the December quarter but decreased 1.1 percentage points annually.
Mr Groves said vacancy rates lower than 3 per cent indicated strong demand for rental accommodation, while rates higher than 3 per cent are generally considered to reflect an oversupply of rental properties.
“The vacancy rate in the December quarter increased in Sydney, Brisbane, Adelaide, Canberra and Darwin, remained stable in Perth, but decreased in Melbourne and Hobart,” he said.
“The largest increase was in Darwin (0.8 percentage points).
“The largest decrease was in Melbourne (0.8 percentage points), while Adelaide has the tightest rental market with a 0.5 per cent vacancy rate.”
The report also found the weighted average capital city median house price dropped 8 per cent over the year to December, or 0.9 per cent for the December quarter, to $945,474.
“This was the largest annual decrease over the past 20 years,” Mr Groves said.
“In the eight capital cities, the median house price increased in Adelaide (1.5 per cent), Perth (2.7 per cent), Canberra (0.5 per cent) and Hobart (4.1 per cent) and declined in Sydney (down 2.1 per cent), Melbourne (down 1.6 per cent), Brisbane (down 0.7 per cent) and Darwin (down 1.8 per cent).
“The largest rise in median house price over the quarter was 4.1 per cent in Hobart.”
Hobart’s median house price now sits at $790,000.
Annually the largest median house price rise was in Adelaide at 10.8 per cent to $665,000.
Sydney is still Australia’s most expensive capital city with a median house price of $1.4 million, while Darwin is the cheapest at $540,000.
Mr Groves said the REIA REMF March quarter would show the continued pressures on the housing and rental market caused by low supply.
“We will be looking to state and federal governments for meaningful action on housing and reforms of systems limited a rapid injection of rental supply,” he said.
“We have had inadequate investment and planning reform in Australia for many years and now it is time for true action.”