Rental prices rising at an ‘extremely rapid pace’, says new report

The hammerblows for renters just keep coming with a new report showing prices in the capitals have soared once again.

Rent is rising at “extremely rapid pace”, with one capital city seeing prices soar by almost 10 per cent, a grim new analysis has found.

It’s just another sign that Australia’s rental pain isn’t ending any time soon.

Data from property valuers PropTrack has stated rents in Australia’s major cities went up 4 per cent in the quarter to March, while over the last year prices went up by 13 per cent.

“With rental market conditions extremely tight, we expect rental prices will continue to climb,” the PropTrack analysis stated, quoted by 9 News.

“This is particularly the case in capital cities, where rent increases have not yet eased since accelerating in early 2022.”

In the last quarter, rental prices in Perth went up by 9 per cent.

Prices in Perth are up by 9 per cent. Picture: NCA NewsWire / Sharon Smith

However, in regional Australia the rise was less marked with rents up 2.2 per cent in the quarter and 4.5 per cent annually.

“In the regions, rent growth has slowed after significant rent increases throughout the pandemic,” the firm said.

PropTrack data from last month revealed rents in some suburbs had gone up by as much as $600 per week in the year to March as a lack of supply hit.

Unsurprisingly, the biggest rises were in the ritziest areas.

It’s been a nightmare for renters. Picture: NCA NewsWire / Jeremy Piper

The beachside suburb of Clovelly, south of Bondi in Sydney’s eastern suburbs, saw the biggest dollar rise in rent for a house over the year.

Renters there can now expect to pay on average $633 more a week to rent compared to the same time last year, with a median rent of $1995.

Rose Bay, which overlooks Sydney Harbour, saw a $600 jump in rents for a house to $2000 a week, followed by a $525 rise in Middle Cove on the city’s north shore.

Three Gold Coast suburbs – Surfers Paradise, Paradise Point and Clear Island Water – were next on the list with price hikes of around $400.

Weekly rents in Clovelly (above) in Sydney have gone up by an average of $633 per week.

The report stressed however these dollar amount rises were not typical of the changes in house rents elsewhere.

When it came to apartments, Sydney was again top of the list of most expensive suburbs.

Renters in Caringbah South, in the Sutherland Shire, are now paying on average $230 more a week for a total rent of $980.

Eveleigh South, on the edge of the CBD in Sydney’s inner west, is now $200 pricier for units with historic Millers Point near the Harbour Bridge not far off that amount.

The report said a return of people to offices in Sydney’s CBD as well as students returning to universities had driven the rise in rents closer to the centre of the city.

Away from New South Wales, Banksia Beach on Bribie Island, north of Brisbane, saw the biggest unit rent rise by $160 a week to $610.

“2023 is a year that’s going to put a lot of pressure on households financially,” PropTrack economist Paul Ryan told ABC News.

“There are very few available rentals. Rents are increasing rapidly.”