Rental prices continue to climb in Australia, with average rental property at $499 as of December 2021, compared to $465 in December 2020, according to Domain’s latest Quarterly Rent report.
Just last year, national rental prices increased by 7.4%, making it the highest growth year since 2009.
Mozo said the increase comes as no surprise, after the Australian real estate market shattered all expectations late last year and reached a value of $9 trillion, which also affected the renting market.
For example, if the cost investing in a property goes up, the renters living in that property will also typically see rent prices increase.
CoreLogic’s quarterly rental review found that “regional rents continued to outpace capital city rents over the fourth quarter with regional dwellings rising 2.5% against the 1.6% rise in capital city rents.” This brings the annual regional rental growth rate to 12%.
In the last 10 years, rent in regional areas was up by 33%, compared to 25% growth across the combined capitals. Even with a higher growth rate than capital cities, rentals in regional areas remain more affordable than capital city rents.
Tim Lawless, CoreLogic’s research director, said stronger rental prices and growth across regional markets are due to the surge in regional population throughout the pandemic, especially across regional Victoria and NSW, mozo reported.