News

High demand for rentals sees rents for houses increase sharply across Australia

Rental stock levels have been slowly diminishing since mortgage lending went under the spotlight.  The tighter banking regulations forced many investors out of the market as interest only loans became difficult to retain. COVID added pressure to an already limited housing supply with the return of expats and grey nomads, plus a desire from many to leave higher density or shared housing for a lifestyle change.

The huge demand in property (the most I have ever seen in the 17 years I have been in the industry) has seen rents increase sharply in a very short period.  The Core Logic 'Annual Change In Rents' for houses Jan 20 to Jan 21 reports rents across Adelaide have increased by 4.1%, up on Sydney at 2.1% and Melbourne 0.8%, but significantly lower than Darwin at 12.4% and Perth 11.7%.  To put that in perspective for an average $350 week property, 4.1% equates to a whopping $15pw increase.

Great news for investors, but grim news for tenants as the forecast is for rents to continue to climb.  The NAB Residential Property Survey predicts a further increase over the next year of 3.8% and 4.9% over the next 2 years.

Rent values vary upon suburb, demand and of course property type.  Here at Trove we aim to provide you with factual information on the market when providing our recommendations for rent increases.

To see the full report from Core Logic click here.

To see the full report from NAB click here.