Revealed: New data shows rents in the South East could ease

After a record year of growth in the state’s South East rental prices, new figures reveal demand may ease in the region as more people make alternative living arrangements.

There are early signs the rental crisis, which has been plaguing the country’s regional areas, may ease as prices start to settle and competition for the supply of homes slows.

According to the latest New PropTrack report, rent prices have steadied in the South East over the December quarter after showing massive growth during 2022.

Rents in the South East climbed by 16.7 per cent for houses, 17.2 per cent for units and 17.9 per cent for dwellings between December 2021-22.

PropTrack Director Economic Research and report author Cameron Kusher said the numbers showed the level of growth had been reducing since March, with the December quarter showing no growth in house and dwelling rental prices.

“It was surprising to see that rents in a lot of parts of the country were unchanged over the last quarter,” he said.

“It’s only one-quarter of data — but it’ll be interesting to see if it’s just a blip.

“If we get another quarter of slowdown, I think it’s pretty clear then that the market is slowing off.”

PropTrack economic research director Cameron Kusher: Picture: Supplied

Between September and December 2022, rents for houses and dwellings went unchanged, while unit rentals increased by 6.3 per cent.

Ray White Mount Gambier senior property manager Jess Teakle said the cost of living pressures had seen an increase in the number of residents downsizing.

“At the same time though a lot of professional couples are moving to the area and all that they are wanting is a low maintenance unit rather than a house,” she said.

Ray White Mount Gambier Senior Property Manager Jess Teakle. Picture: Supplied

Ms Teakle said house sharing had seen a resurgence — thereby opening up the supply of available homes.

“We are having tenants moving in with each other — that is happening a lot which I think it's been probably leaving properties vacant,” she said.

“We got up to about six properties available online last week, which was unheard of last year.

“At best we had two maybe three properties available (at any one time) in November last year.”

Last year applicants per property peaked in the mid-40s, which was partly caused by people from the major cities making the tree chance to the regions. 

Though demand for property seems to be “lessening”, with roughly 20-25 applicants per listing, Ms Teakle said there was still a high migration of numbers to the South East — with some now leaving flood-affected areas.

“I feel like that will probably be the next thing that we are dealing with.”

Mr Kusher said there was “scope” for a reduction in rents, but it would not be seen until at least September or December.

“It might be a bit tougher to find a tenant and (landlords) don’t have as much scope to put up rents as much as they did,” he said.