It crossed my mind the other day that I have written quite a few articles about the cost of buying a house in Australia, but I’ve never written one about the cost of renting.
- Renting: Weekly rental prices in Australian capital cities flat; could fall – March 2016
- Rental rates across Australia are falling at the fastest pace on record – July 2016
- The cost to rent in Australia is still falling – 7 days ago
- Rents dropping in most Australian cities – 6 days ago
- Renting now a whole lot cheaper – 2 days ago
As you can see, lots of people talking about it, so I thought it was about time I did as well.
House rental prices in Australia as at August 2016
As you can see, the information has come from CoreLogic. According to their own website, they are ‘the largest provider of property information, analytics and property-related risk management services in Australia and New Zealand.’
Rents fell by 0.3% in July, and the same again in August of this year. Research analyst Cameron Kusher expects this trend to continue.
“As long as wages growth continues to stagnate, coupled with historically high levels of new dwelling construction and slowing population growth, landlords won’t have much scope to increase rents. On the flipside, renters are now in a much better position to negotiate.” he said.
What will you get for your money?
That isn’t so easy to say, each of our capitals are different. The best way to truly find out what you are likely to get for your money from each city is to search the latest available rentals online. You will see a couple of links at the foot of this article to help you do that.
What I think it is fair to say though is that at the above quoted average rental prices, you will get, pretty much, an average house. By that I mean a three or four bedroom house, probably detached and in a nice area.
If you want a unit or an apartment, or you choose to live in an economically challenged area, you will pay less. If you want to live in a bigger house or in a more desirable sought after area, you will pay more.
The rental prices quoted in the chart though are a good indication of the differences from city to city.
You may have noticed one ‘standout’ performance in the above figures, and that’s Hobart where rents have gone up 6.8%. I have read reports of a severe shortage of property for sale in Greater Hobart, I suspect that must also then be the case for rentals.
So, just for a bit of fun, I took a look at availability of rentals in a selection of our capital cities. Cities not covered by this are Sydney and Adelaide. For some reason it was not possible to search for the ‘Greater’ regions in these places, only selected suburbs and postcodes.
I excluded Canberra because the search results always included properties in nearby Queanbeyan. Anybody who has read my page about Canberra, in particular the disgruntled comments by some Canberrans, will know that Queanbeyan is not part of Canberra in any way whatsoever.
Here are the results, as at today’s date.
- Available for rent: 2146 properties
- Most expensive rental: $2500 per week
- Least expensive rental: $330 per week (1 bedroom unit)
- Available for rent: 7777 properties
- Most expensive rental: $2950 per week
- Least expensive rental: $110 per week (room – house share)
- Available for rent: 12,785 properties
- Most expensive rental: $3000 per week
- Least expensive rental: $70 per week (room – house share)
- Available for rent: 265 properties
- Most expensive rental: $1000 per week
- Least expensive rental: $130 per week (1 bed studio)
- Available for rent: 965 properties
- Most expensive rental: $2000 per week
- Least expensive rental: $179 per week (room – house share)
These numbers are really quite significant, it’s easy to see why rents are rising in Hobart. It also becomes quite clear why they are falling dramatically in Perth. This is an ever-changing situation though, and if you are planning to move to anywhere in Australia, it would be a good idea to check the latest situation on rentals if you are going to be looking to rent.
You can do that at realestate.com.au
For more on this subject, visit: