Australian Rental Market Strong In 2011
The rise has occurred off the back of relatively sluggish property value growth over recent months.
The Pilbara region of WA has the highest rents in Australia, with median house rents at $1650 per week, according to RP Data's quarterly March rent review.
The WA mining region recorded a rise in rent of 8.2 per cent in just the last three months and a huge 288 per cent growth over the last five years. The high rents have been attributed to the isolated region's strong demand for housing, mainly from resource sector workers, as well as an insufficient supply of rental accommodation.
There was a 1.3 per cent increase in rents across Australia's combined capital cities. The rise has occurred off the back of relatively sluggish property value growth over recent months.
RP Data analysts predict that the limited purchasing activity based on affordability concerns will most likely result in increasing demand for rental properties.
Nationally, the median rent for a house is $360 per week while a unit rents for $355 per week. Capital city median house rents alone are now $380 per week while the median rate for units is now $375 per week.
Darwin has the most expensive capital rents with houses now $520 per week followed by Canberra at $500 per week and then Sydney at $450 per week. In Perth house rents are an average of $395 per week, up 1.3 per cent in the last quarter or 3.9 per cent for the last 12 months. Adelaide is now the cheapest city for house rentals at $330 per week.
When it comes to units, Sydney and Darwin are on par as the two most expensive cities for rentals with a median of $430 per week. A unit in Perth costs $370 per week on average. Brisbane recorded the strongest quarterly unit rental growth at 2.9 per cent, Perth followed at 2.8 per cent.
RP Data is anticipating improved rental conditions across capital cities for the rest of 2011 along with the annual rate of growth which is expected to be superior to that of recent years and in excess of inflation.