Melbourne is the cheapest for tenants
According to Domain data, Melbourne’s rental market conditions remained subdued in the March 2021 quarter.
Rent is A$430 (Rp 4.8 million) a week, down A$ 10 (Rp 112 thousand) a week compared to the previous quarter.
However, the rental market is not uniform. In the eastern, southeastern suburbs and Mornington Peninsula, rents are at record highs.
Unit rents fell A$10 (Rp112,000) during the March quarter to A$375 (Rp4.2 million) a week, marking the 12th straight month of declines in rental prices.
The current unit rental costs have returned to their 2015 price levels.
“For the first time Melbourne is the second most affordable capital city to rent a house together with Perth, but still behind Adelaide,” said Dr Nicola.
“In mid-2020 Melbourne became the third most expensive city to rent a unit, after Sydney and Canberra. It is now the third most affordable city to rent a unit, after Adelaide and Perth,” he explained.
“Tighter rental market conditions in Adelaide and Perth could push prices higher than Melbourne in the coming months. This will make Melbourne the most affordable city to rent a place to live in,” said Dr Nicola.
Rental prices in Perth have continued to rise to their highest in nearly six years.
Perth’s house and unit rentals have increased the fastest of any other city. The average house rental price is A$430 (Rp4.8 million) per week, up 14.7 percent in 12 months, while unit rent is A$365 (Rp4.1 million) per week, up 14.1 percent.
These prices are still lower than in 2013, but the gap is getting closer.
“In half a year, Perth went from being the most affordable capital city to being more expensive than Adelaide,” said Dr Nicola Powell.
“Renting a house in Perth is now on par with Melbourne,” he explained.
“More Australians are moving to Greater Perth. This will add to the demand for housing,” he said.
Price stability in Sydney
The rental market in Sydney is showing signs of stabilizing in the first quarter of 2021.
Unit rentals are holding up at an average of A$470 (Rp5.2 million) a week, after a nine-month decline last year of 9.6 percent.
However, rental prices remain at a record high of A$550 (Rp6.1 million) per week, the same as in all four 2020s, or 3.8 percent higher than 12 months ago.
“The rental market in Sydney remains variable depending on the type and location of the property,” said Dr Nicola.
“Conditions for renting houses are tighter compared to units and prices are becoming more competitive in the suburbs,” he explained.
“Rents for homes and units on the Central Coast hit record highs. Rents for homes in the North Coast, Sutherland, southwest suburbs and the Blue Mountains also hit record highs,” he said.
“Houses in the eastern suburbs were A$100 lower and units down A$70. Rents for units in the city and the south were down A$90 (Rp1m) a week and in North Sydney and Hornsby were down A$80. (Rp 898,000) a week,” he added.
Currently the median rent for a house in Hobart City has risen to $480 per week, and for unit rentals it has been $420 per week.(Supplied: Hobart City Council) Highest record in Hobart
Rents in Hobart jumped A$20 in the first quarter, pushing home rental prices to a record high and unit rents returning to last year’s levels.
The rent for the house is now A$480 (Rp5.3 million) a week, while the unit is A$420 (Rp4.7 million) a week.
“About five years ago Hobart was the most affordable city to rent, now it’s the fourth most expensive to rent houses and units,” said Dr Nicola.
“The estimated number of vacant places decreased by 38 percent compared to last year. When the rental moratorium ends, the ‘landlord’ will adjust the rental price,” he said.
Rents on the Sorell-Dodges Ferry rose 12.4 percent but rents in Hobart were lower than 12 months ago, down 2.7 percent for homes and 5.6 percent for units.
Adelaide is still the most affordable
Rents for houses and units in Adelaide actually experienced the highest increase.
The average house rent is A$425 (Rp4.7 million) a week, up A$15 (Rp168 thousand), while unit rental prices are now A$350 (Rp3.9 million) a week, up A$10 (Rp112 thousand).
“The increase in rental rates for houses and units in this quarter was the highest since 2009, up 3.7 percent and 7.6 percent, respectively,” said Dr Nicola.
However, despite rising rents, Adelaide remains the most affordable city for renters.
“It’s only A$5 (Rp56 thousand) difference in house rental prices in Adelaide and Melbourne. If rent increases continue, Adelaide will surpass Melbourne in the coming months,” he said.
Prices in Darwin are the same as in Sydney
In the past 12 months, house rents in Darwin have jumped 14.6 percent to A$550 (Rp6.1 million) a week, and unit rents are up 13.2 percent to A$430 (Rp4.8 million) a week.
This means tenants are spending A$70 more in a week on housing and A$50 more for units.
“It costs the same to rent a house in Darwin and Sydney,” said Dr Nicola Powell.
“The rental market in Darwin may recover quickly, but rents remain below the 2013 record,” he explained.
“The sustainability of rental rates in Darwin is questionable given the short-term factors driving the recovery in rental demand,” he said.