Will your rent stay low this year? See how this 'price freeze' can affect Aussies this year!
- Replies 3
In the ever-fluctuating Australian housing market, a new development has recently caught the attention of renters nationwide.
After years of skyrocketing rental prices, a slow yet surprising shift could offer a glimmer of hope to those feeling the pinch of high living costs.
Latest housing data revealed that national rental prices have increased at the slowest pace—a first in four years.
This price freeze has been evident in bustling cities like Sydney and Melbourne.
According to the recent REA Group Market Insight report, the median weekly rent in Sydney has remained steady at $730.
Meanwhile, rental prices in Melbourne have stayed at $570 for the past six months.
To compare, rent prices in Sydney last year skyrocketed to 16.7 per cent. In contrast, the latest data showed a slow increase rate of 4.3 per cent.
Melbourne, on the other hand, saw a slightly lower increase rate at 3.6 per cent.
Rent prices across the country saw an annual rise of 6.9 per cent since late 2021.
PropTrack Senior Economist Paul Ryan pointed out the changes happening in the market.
'We are starting to see balance come back to the rental market,' Mr Ryan said.
'Renters have had a very tough time over the last few years, and rents are at a very high level as a result of that.'
'While there is a lot of demand, landlords are now having to be realistic relative to people's income,' Mr Ryan added.
Mr Ryan also indicated several factors for the price freeze: elevated rates of investor activity and rental properties taking longer to lease out.
Yet, despite the lesser market pressure, Sydney's rental prices remain significantly higher than other Australian cities.
Renters within the city still dedicate a large portion of their income to cover housing costs.
Another report indicated that rent increases most likely occur between January and February, often coinciding with university students moving in and workers relocating for new job opportunities.
After the said period, the moderate growth should continue to persist.
Melbourne remains a budget-friendly capital city market due to stronger-than-average housing construction across the city.
The ACT also saw stable rent prices throughout the year, with a median of $620 per week.
'Brisbane continues to be a really hot housing market; lots of people are still moving to Brisbane, and that's showing in both house prices and rental increases,' Mr Ryan shared.
Brisbane's rental market kept a median price of $630 and a five per cent increase over the past year.
Adelaide saw a 7.4 per cent jump in rental prices over the year. Yet, the city kept their median rent at $580.
On the other hand, Perth recorded the most significant annual increase in rent.
Rental properties across the city have a median rent of $650 per week and saw an increase of 8.3 per cent.
This information is crucial for everyone, especially seniors who are considering their living conditions and budgets.
If you're contemplating a move or re-negotiating your current lease, this could be an opportunity to secure a more favourable rental rate.
Have you noticed these changes in your rented property? Are you considering a move to another state, or will you be keeping your lease in your current location? Share your thoughts and insights about these changes in the comments section below.
After years of skyrocketing rental prices, a slow yet surprising shift could offer a glimmer of hope to those feeling the pinch of high living costs.
Latest housing data revealed that national rental prices have increased at the slowest pace—a first in four years.
This price freeze has been evident in bustling cities like Sydney and Melbourne.
According to the recent REA Group Market Insight report, the median weekly rent in Sydney has remained steady at $730.
The stagnation in rent prices followed a significant price hike in 2023 and early 2024. Image Credit: Pexels/Ivan Samkov
Meanwhile, rental prices in Melbourne have stayed at $570 for the past six months.
To compare, rent prices in Sydney last year skyrocketed to 16.7 per cent. In contrast, the latest data showed a slow increase rate of 4.3 per cent.
Melbourne, on the other hand, saw a slightly lower increase rate at 3.6 per cent.
Rent prices across the country saw an annual rise of 6.9 per cent since late 2021.
PropTrack Senior Economist Paul Ryan pointed out the changes happening in the market.
'We are starting to see balance come back to the rental market,' Mr Ryan said.
'Renters have had a very tough time over the last few years, and rents are at a very high level as a result of that.'
'While there is a lot of demand, landlords are now having to be realistic relative to people's income,' Mr Ryan added.
Mr Ryan also indicated several factors for the price freeze: elevated rates of investor activity and rental properties taking longer to lease out.
Yet, despite the lesser market pressure, Sydney's rental prices remain significantly higher than other Australian cities.
Renters within the city still dedicate a large portion of their income to cover housing costs.
Another report indicated that rent increases most likely occur between January and February, often coinciding with university students moving in and workers relocating for new job opportunities.
After the said period, the moderate growth should continue to persist.
Melbourne remains a budget-friendly capital city market due to stronger-than-average housing construction across the city.
The ACT also saw stable rent prices throughout the year, with a median of $620 per week.
'Brisbane continues to be a really hot housing market; lots of people are still moving to Brisbane, and that's showing in both house prices and rental increases,' Mr Ryan shared.
Brisbane's rental market kept a median price of $630 and a five per cent increase over the past year.
Adelaide saw a 7.4 per cent jump in rental prices over the year. Yet, the city kept their median rent at $580.
On the other hand, Perth recorded the most significant annual increase in rent.
Rental properties across the city have a median rent of $650 per week and saw an increase of 8.3 per cent.
This information is crucial for everyone, especially seniors who are considering their living conditions and budgets.
If you're contemplating a move or re-negotiating your current lease, this could be an opportunity to secure a more favourable rental rate.
.png){kind=icon}
