Rents have risen at a record quarterly rate, PropTrack reveals

Constricted rental conditions, soaring immigration see rents rise at fastest pace on record in September quarter.

Rents have risen at the fastest quarterly pace on record in the September quarter, and are set to continue climbing as conditions remain tight.

The PropTrack Market Insight Report showed weekly rental prices rose 4.3 per cent over the September quarter as well as a historic advertised rental rate increase by 10.3 per cent year on year, also the largest annual rise on record.

This comes after a 2.2 per cent median weekly advertised rent rise in the June 2022 quarter.

PropTrack director of economic research Cameron Kusher said rents were rising because of the low volume of stock available for rent and a strong demand for rental accommodation that is affording landlords the scope to increase weekly rents.

“With the supply of rental stock remaining extremely tight and migration to Australia lifting, we anticipate rents to continue to rise over the coming quarters,” he said.

“Capital cities are expected to see the lion’s share of growth as demand and subsequent rental price growth softens in the regions.”

Source: PropTrack

The national weekly median rent for houses was $500 and for units $450 in the September quarter, which remains at the widest differential on record.

Capital city rents rose by 3.2 per cent quarter on quarter to a median advertised weekly rent of $520, and were 7.8 per cent higher year on year; regional rents were the same quarter on quarter at $470 and 12.5 per cent higher year on year.

House rents have increased at a faster pace over the past year than unit rents, rising 11.1 per cent and 7.1 per cent, respectively.

Four-bedroom houses, five-plus bedroom houses and one-bedroom units recorded the greatest increases in the past year, rising 12 per cent, 11.4 per cent and 11.1 per cent respectively.

Melbourne’s median advertised weekly rent for the September quarter was $460, Sydney’s was $640, Brisbane’s was $525 and Canberra’s was $690. Darwin, Adelaide, and Hobart’s median advertised weekly rent were $620, $480 and $540, respectively.

Originally published as Rents have risen at a record quarterly rate, PropTrack reveals