New data shows easing rental conditions across Australia, with some areas recording significant weekly rent reductions
Rental market conditions across Australia are easing, with advertised rents flatlining in most cities and even declining in some regions, according to PropTrack’s latest Market Insights Report.
Nationally, rent prices rose by 1.6% between September and December 2024. However, rents remained steady across all capital cities except Brisbane and Canberra during the same period.
In Sydney and Melbourne, the nation’s largest rental markets, weekly rents have held firm at $730 and $570, respectively, for the past six months.
Annual rent price growth slowed to 6.9% in 2024, down from 11.5% in 2023 and 15.6% in 2022. The figures reflect a cooling market following record-breaking growth and historically low vacancy rates over the past several years.
Some regions experienced even more pronounced shifts, with advertised rents declining during the quarter.
For houses, areas such as Adelaide – West, Queensland – Outback, and Central West recorded the largest price reductions, with weekly rents falling by $10-$15 between September and December 2024.
Conditions also improved in Sydney – Ryde, Darwin, and Sydney – Blacktown, where weekly rents dropped by 2%-2.3%, equating to $5-$15 savings per week. Over three months, these reductions translate to savings of $65–$195 for tenants.
For units, Mandurah led the rent declines, with weekly prices dropping by 3.8% over the quarter. Melbourne – Inner East and South Australia – South East followed, recording decreases of 3.4% and 3.1%, respectively, or $10-$20 per week.
Renters in regions such as Sydney – Parramatta, Adelaide – West, and Sydney – Outer West and Blue Mountains also saw modest declines of $5-$10 per week.
“The moderation in the market is a result of an increase in the number of properties available for rent in recent months, likely due to the return of investors and more first-home buyers choosing to buy instead of rent,” said Megan Lieu (pictured above), economic analyst at REA Group. “Investor lending increased by 25.2% from the September 2023 quarter to the September 2024 quarter, while first-home buyer loans increased by 8% over the same period.
“As we look ahead, we expect rents to increase at a more moderate rate this year. However, this growth is anticipated to be notably slower than those observed in prior years, which may ease the burden on renters.”
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