Australian rents are rising at the slowest pace in three years
AUSTRALIAN median rents rose 6.9 per cent in the three months to December from a year ago, the slowest pace since 2021, according to data from REA Group Market Insight.
Nationwide rents still made a new high of A$620 (S$527) per week in the December quarter, figures by the consulting firm released on Thursday (Jan 9) showed, underlining the living cost pressures that Australian households are grappling with.
Rents are a key input for quarterly inflation data which is due later this month. The monthly price print on Wednesday showed a key measure cooled in November, putting a Reserve Bank of Australia rate cut in play sooner than later.
Data showed that capital city rents rose by 6.7 per cent in October to December from a year ago. Rents in the two biggest markets of Sydney and Melbourne have now been unchanged for six months.
“The pace of rent growth across the country is slowing, with market conditions easing for renters,” said Paul Ryan, senior economist at REA Group. “The slower pace of growth comes on the back of an increase in the number of available rentals as well as cost of living pressures limiting tenants’ spending capacity.”
Ryan expects rents to increase “moderately” this year.
Housing is shaping up as a significant issue at the upcoming election which is due by May 17. Prime Minister Anthony Albanese’s Labor government is trying to fix the nation’s housing affordability crisis by clamping down on immigration and incentivising build-to-rent properties but voters are not yet convinced.
A separate data by CoreLogic earlier this week saw the national Home Value Index slid 0.1 per cent in December following 21 months of gains. Despite that, the property consultancy said the downturn is likely to be “shallow and short-lived”. BLOOMBERG
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