Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

How Australia’s rental market fared at end FY22

By Kyle Robbins
08 July 2022 | 1 minute read
aerial NSW suburbs reb

 The nation is in the grips of a severe rental crisis, with vacancy rates and supply falling sharply while rents go the other way.

CoreLogic’s Quarterly Rental Review for the second quarter of 2022 paints a very grim picture of the national rental landscape, showing the national rental index as having increased 0.9 per cent in June and 2.9 per cent in May.

When compared to June 2021, dwelling rents are up 9.1 per cent in the capital cities and 10.8 per cent in regional areas, with CoreLogic research analyst and the author of the report Kaytlin Ezzy stating that in the absence of international migration, the current conditions are mainly down to supply shortages and high demand.

Advertisement
Advertisement

“This sustained period of strong rental growth has seen national dwellings record the highest annual growth in rental values since December 2008, when rental demand was supported by record levels of international migration,” she said.

Such is the nature of current national supply shortages; CoreLogic is reporting vacancy rates have fallen to a record low of 1.2 per cent, compared to 2.2 per cent this time last year. This drastic decline has been facilitated by declines in available rentals in every capital barring Canberra. 

Ms Ezzy detailed how these supply shortcomings are impacting the market, with June’s rental listings 34 per cent below the country’s long-term average for this time of year, which has seen capital city rents climb 3 per cent in the June quarter, while in the same time regional rents have risen 2.7 per cent.

Darwin was the only capital city to record rent growth below 2 per cent, while Adelaide’s quarterly increase of 4.3 per cent is its strongest growth rate since CoreLogic’s records began in 2005.

In line with this jump, Melbourne overtook the South Australian capital as the most affordable city nationwide, with median rents $480 per week, compared to Adelaide’s $492, while Canberra remains the country’s most expensive rental market, with $690 the average weekly asking price, followed by Sydney ($643). 

CoreLogic’s research director Tim Lawless believes that as migration begins to increase, so too will rental demand.

“With the exception of Darwin, the strong rental growth seen over the past year has led dwelling rents across all of the capitals to reach new record highs,” he said. 

“Despite growing affordability concerns, rental markets are expected to remain tight for some time yet partly due to a shortage of supply following a long period of investment activity between 2015 and 2021, but also due to a renewed rental demand as international migrations recover.

“Worsening affordability could have a negative impact on rental demand as more people try to minimise costs by maximising occupancy rates or reforming larger households. However, this will likely be offset by additional rental demands as international migration returns to pre-COVID levels.”

Coinciding with rental increases, dwelling rental yield also grew to hit 3.33 per cent, 12 basis points above the record low of 3.21 per cent seen in January.

However, Ms Ezzy did affirm that “despite the recent rise, gross yields are still slightly below the levels recorded this time last year and below the five-year average.”

How Australia’s rental market fared at end FY22
aerial NSW suburbs reb
lawyersweekly logo

Tags:

Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.