INDUSTRY NEWSNationalNEWS

Tight rental conditions forcing rents higher

Tight rental conditions across the country will likely see rents continue to surge in a number of locations according to new analysis.

The quarterly HOOD.ai Tenant Report has found renters in the unit market of Bogangar in the Tweed Valley of NSW are at most risk of a sharp rental hike, having seen unit rents jump 52.9 per cent in the past 12 months.

Renters in Bogangar pay $650 per week to rent a unit with the vacancy rate sitting at 0.7 per cent.

Other markets at risk of future rent rises include houses in Burrum Heads in Queensland, units in ​​Avoca in Queensland, units in Hastings Point in NSW and houses in Paradise Point in Queensland.

HOOD.ai founder and CEO Tommy Fraser said rapidly rising rents were putting more focus on rental affordability.

“Vacancy rates are low in many parts of Australia, and often falling as well, which is putting upward pressure on rents,” Mr Fraser said. 

“Traditionally, when renters get priced out of an area, they tend to shift to a cheaper suburb nearby, but that’s become increasingly hard in the current market, which is forcing tenants to move even further in search of affordable accommodation. 

“If you live in any of the suburbs mentioned in this report, take note, because there’s a strong chance your landlord will increase your rent at the next rental review.”

Overall the report identified 20 markets at risk of further rent increases led by NSW with eight suburbs, Queensland (6), Western Australia (4), Victoria (1) and the Northern Territory (1).

The report looked at suburbs where rents have increased at least 33 per cent during the past 12 months and have a vacancy rate of less than one per cent.

Of the 20 suburbs, 17 are in regional locations and three are in the capital cities, while 13 are house markets and seven are unit markets. 

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Rowan Crosby

Rowan Crosby is a freelance journalist specialising in finance and real estate.