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New research has shown that rent-to-own prices have fallen across the country. Domain.
However, in most cities, the cost to rent a unit has remained flat to increased. Only Adelaide and Sydney saw declines.
The wider slide in unit and home prices across the country is responsible for the fall in rental cost. This is due to a slowdown in the economy and an increase in supply.
Learn more These are the suburbs in which renting is cheaper than buying
Sydney rental prices
The increase in apartment construction has caused a drop of almost five percent in unit rental prices in Sydney over the past twelve month.
Domain states that Sydney remains the most expensive place to rent a unit in the country, with an average rent cost of $525.
“Ongoing strong housing development has weighed down rents and contributed to the rising vacancy rate to 3.2% June, up from 2.4% a Year ago,” reads the report.
“Rents performed well in Sydney’s North Shore and Central Coast, but declined elsewhere in Sydney.”
The median rental unit price is just five dollars per week lower than renting a house in Sydney.
The June quarter saw a 1.9% drop in home rental prices for the harbour city.
Melbourne rental prices
The June quarter saw a significant drop of 2.3% in Melbourne’s house rental prices
Despite falling house values, the flat unit rental cost has not declined despite an increase in the number of people.
The report said that “over the past year, house rents grew fastest on the Mornington Peninsula and Melbourne’s inner south, but were stable in Melbourne’s eastern suburbs.”
“Rents increased by more than five percent in many regional towns over the past year.”
The median weekly rent for a Melbourne house is $430. This is tenfold more than the unit cost.
Brisbane rental prices
Although Brisbane’s rents are flat year-over, they dropped 2.4% in the quarter last.
According to the report, an average house is being rented for $400 per semaine, while a unit would be $380 per week.
“Unit rentals have held up in recent years despite a large number of new apartments being constructed.”
In Brisbane, unit prices remained stable during the last quarter.
This is a trend that has been resisted. The fastest annual rate of rent increases for Perth homes and units has been since 2013.
Although house rents decreased in June quarter, they rose by 4.3 percent to $365 per week, compared to the previous year.
Despite a 3.3% increase in unit rents over the quarter, the median unit rent now stands at $310 per week.
According to the report, “Perth’s rental market is recovering due to a better Western Australian economy and a pick-up in population growth.”
“Rents have also increased due to a slowdown of new housing construction.”
Adelaide Rental Prices
Adelaide is still the most affordable city to rent. Tenants have found it easier in recent quarters.
House rentals fell by 1.3% while units fell by 1.6%
The differences between houses and units are significant. The median apartment costs $305 per weekly, $80 less than the median property and is $305 more than the median house.
Hobart rental prices
After a year of rents skyrocketing, the June quarter saw a stabilization.
The weekly house price is still $450 despite an almost 10% increase over the previous year. This is a relief for tenants.
After a 5.6% rise in the last 12 months, units are steady at $380 per săptămână.
According to the report, “Despite rapid rise in rents, Hobart remains quite affordably when compared to other capital cities.”
“New housing construction is increasing – Tasmanian building approvals are 26 per cent higher than the previous year – which should help slow rental price growth in the coming year.”
Launceston’s rental prices have also increased by 10 percent in Tasmania.
Apartments for rent in Canberra
The nation’s capital remains the most expensive place to rent a house in Australia, but there has been some relief.
The median rent in Canberra for houses has fallen by 3.5%, to $550 per Weekly.
Apartment rents rose by 1.1 percentage to $470 per semaine
“Unit rents have grown 18% in the past three year despite Canberra’s ongoing apartment construction boom,” said the report.
“Strong population growth at 2 percent per annum over the past two decades has created a demand to rent properties.”
Rent a house in Darwin
Over the past five years, Darwin’s rental market has seen a dramatic decline. This trend was evident during the June quarter.
Renting a house fell 2 percent to $490, while renting an apartment fell 3.8% per week to $385.
According to the report, weekly rents for houses fell from $700 a $490 in 2014 to $570 while units fell from $570 and $385.
“Due high population growth during the mining booms Darwin has seen a decline, which has resulted in a decrease of rental property demand.”
Renting or buying?
Domain released a report earlier this week that showed which suburbs are more affordable to rent than to buy.
It is more affordable in Canberra than other suburbs, however, Sydney is the most costly.