Rents on the Rise
The pace of rental growth has once again started to pick up pace.
The ANZ CoreLogic Housing Affordability report says that annual rent growth has lifted from a recent low of 8.1% in the year to October 2023, to 8.6% in the year to March 2024.
It says rents are growing strongly within the housing market in particular. From 6.8% in the year of September 2023 to 8.4% in the year to March 2024.
Perth recorded the highest growth in rents in the past four years with its rents up 56% which is the equivalent of $236 extra per week.
According to CoreLogic in the year to March 2024, rents are up by 14% in Perth, 10.3% in Melbourne, 9.2% in Sydney and Adelaide, 8.5% in Brisbane and 3.2% in Darwin. They are up by 0.5% in Canberra and down by 1% in Hobart.
It says monthly rent increases are outpacing increases in housing values, and as a result, gross rental yields increased by three basis points in March 2024 to 3.75% - the highest since October 2019.
Regional markets are also experiencing strong rent increases with regional Western Australia up by 12% in the past 12 months, regional South Australia up by 9.6% and regional Queensland up by 7.3%.
