After a brief respite from the holiday impact on the rental market in June, Australian home rents picked up again in July, continuing their upward trend. The majority of Australia's capital cities reported higher weekly rental rates in July compared to June, a phenomenon that reflects the ongoing lack of rental property supply.
Sydney and Darwin were the top performing cities in July, with weekly rents both rising by 2.3%. Meanwhile, rents rose by 1.9% in Hobart, 1.8% in Adelaide and 1.3% in Melbourne.
Meanwhile, house rents in Brisbane, Perth and Canberra remained stable in July. Sydney continued to see higher weekly house rents at A$768, while Hobart remained a relatively affordable area with weekly rents at A$550.
Housing vacancy rates remained generally stable in most capital cities in July, following a general increase in June. Darwin's vacancy rate increased, while Perth's decreased.
House rents generally showed significant increases in most capital cities over the past year, with Perth showing the largest increase at 18.8%. However, annual house rents fell by 3.8% in Canberra and 1.3% in Darwin.
Meanwhile, Brisbane and Melbourne again reported higher apartment rents in July, up 2.1% and 1.4% respectively. Apartment rents in Adelaide, Perth and Canberra remained stable during the month, while Sydney's apartment rents fell again by 1.0%. In addition, apartment rents fell by 2.9% in Darwin and 2.2% in Hobart.
Notably, apartment rents in Melbourne and Sydney continue to show extraordinary growth over the past year, rising 32.4% and 30.9% respectively. Annual apartment rents were also generally higher in other capital cities, with the exception of Hobart and Canberra, which saw annual apartment rents fall by 1.1% and 2.2% respectively.
Despite apartment rents declining again in July, Sydney's weekly apartment rents remained a distant second at A$720, while Adelaide's apartment rents remained the most affordable at A$450 per week.
Vacancy rates generally remained stable or fell in July compared to June, with increases in Brisbane, Hobart and Darwin.
However, after a brief respite brought about by the June holiday season, tenants' rental conditions deteriorated again in July. The upward momentum in rents continued for houses and units in most capital cities, while vacancy rates generally remained stable or declined, continuing at record low levels.
Underlying demand in the rental market clearly continues to outstrip supply, possibly due to affordability issues caused by excessive rents.
2023.09.12
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