Despite the new year, rent rises did not provide any respite for tenants. The national median rent increased by 1.8% in the December quarter to AU$ 580 per week, according to the report. Weekly rentals are AU$ 60 more costly than they were in the beginning of 2023 due to this 11.5% rise from the previous year.
November saw a 1.7% decrease in the number of permits granted for new private-sector homes, according to fresh statistics from the Australian Bureau of Statistics. The first five months of the 2023–2024 fiscal year saw a decrease in building approvals when compared to the same time in 2022–2023, suggesting possible difficulties in the building industry. So you must check this post to know more on Australia Rent Increase 2024.
Australia Rent Increase 2024
According to experts, rent costs may rise by an additional 9.5% in 2024. So here i am sharing What is the Expected Rent Increase in Australia for This Year? If it is not at least a year since the renter started paying the present amount of rent, the rent cannot be raised.
Tenancy agreements that were signed before July 1, 2023, do not apply to more frequent increases in rent. If one or more of the residents or tenants are the same at the time of the agreement’s renewal, the rent increase frequency modifications will be in effect for the length of the lease.
Average rent for a house in Australia
Sydney now has median weekly rates of AU$ 750, making it the most costly capital city overall to rent a residence in, surpassing Canberra. In second position, at AU$ 680 per week, are Canberra, Darwin, Perth, and Brisbane, at AU$ 660, AU$ 660, and AU$ 620, respectively. Each capital city’s median rent is displayed in the table below, along with the percentage increase in rent for the previous 12 months.
Median house rents in December 2023
|All capital cities
Average rent for a unit in Australia
For capital city real estate values, the situation remains mostly unchanged. With a typical flat price of AU$ 680 per week, Sydney is the most costly city for prospective tenants. The capital cities that are next most costly are Darwin (AU$ 550), Canberra (AU$ 560 per week), Brisbane (AU$ 560 per week), and Perth (AU$ 550 per week).
Due to intense competition among renters, many applicants despite laws against rent bidding feel as though they must offer to pay many months’ worth of rent in advance or bid higher than the asking price in order to get a rental property. The capital city unit median rents are displayed in the table below, along with the annual percentage change that each market has experienced.
Median unit rents in December 2023
|All capital cities
Is there any relief?
There has been some relief for regional tenants, whose rates have been fixed at AU$ 500 per week since June. The highest non-metropolitan rentals, however, were recorded in Western Australia and Queensland, with a median of AU$ 580 per week; these figures represent increases of 16.7% and 11.5%, respectively, over the previous year. The typical rent in capital cities increased by 13.2% over the previous year, making life especially hard for urban renters, who now pay AU$ 600 a week.
Why is rent increasing in Australia?
Due in large part to the recent rate rises by the Reserve Bank of Australia and the overall increase in living expenses, landlords have been under a lot of pressure to increase rent. There has also been a scarcity of available rentals. The number of new immigrants and professionals returning to the cities has reduced the number of available housing units, and there hasn’t been enough new housing built. Price increases are a natural result of a less supply and high demand.
Expected Rent Increase in Australia 2024
The shortage of rental houses in Australia in 2024 will force renters to pay high rents, because of the high rate of immigration, the demand for homes is rising quickly. Individuals’ aspirations to own new real estate have grown. People immigrate to Australia in search of better living conditions and educational opportunities. It is anticipated that rental costs would rise by around 7 to 10% by 2024. If the rental rates are increased, the home owner will benefit greatly. The average weekly rent in Australia is AU$ 600.
Factors Influencing Rent Prices in Australia
Yes, the problem of affordable rentals will probably not go away. There is still room for improvement in rental values even in the face of cyclical conditions that are slowing rent increases. Housing reform ideas that increase the number of conveniently situated houses available and establish minimum rental requirements can be beneficial.
Impact of Interest Rates on Rent in Australia
Interest rates have increased significantly in Australia, which has had an impact on several economic sectors. Landlords, who are essential players in the real estate sector, are among those impacted. Landlords may have an indirect impact from rising interest rates due to shifts in vacancy rates and rental demand. It costs more for prospective homeowners to get mortgages when interest rates rise. Landlords may gain in the near run if this results in a drop in house purchases and an increase in the demand for rental homes.