Australia Rent Increase 2024 – What can be the Amount of Rent Increase in Australia?
Australia Rent Increase 2024 – What can be the Amount of Rent Increase in Australia?
Rent increases gave tenants no respite, even in the new year. The report states that during the December quarter, the national median rent increased by 1.8% to AU$ 580 per week. This 11.5% increase from the previous year means that weekly rentals are now AU$ 60 more expensive than they were at the beginning of 2023.
According to new data released by the Australian Bureau of Statistics, the number of permits granted for new private-sector homes decreased by 1.7% in November. Comparing the first five months of the 2023–2024 fiscal year to the same period in 2022–2023 revealed a drop in building approvals, which may indicate challenges facing the construction sector. In order to learn more about Australia’s rent increase in 2024, you should read this post.
Australia Rent Increase 2024
Experts predict that in 2024, rent will increase by a further 9.5%. I’m going to share what I think Australia’s expected rent increase for this year is. The rent cannot be increased if the tenant hasn’t been paying the current amount for at least a year.
Rent increases that occur more frequently will not affect tenancy agreements signed prior to July 1, 2023. The rent increase frequency modifications will be in force for the duration of the lease if one or more of the residents or tenants are the same at the time of the agreement’s renewal.
Average rent for a house in Australia
Sydney has surpassed Canberra to become the most expensive capital city overall to rent a home, with median weekly rates of AU$ 750. Canberra, Darwin, Perth, and Brisbane come in second, third, and fourth at AU$ 680, AU$ 660, and AU$ 620 per week, respectively. The table below shows the median rent for each capital city along with the percentage increase in rent over the previous 12 months.
Median house rents in December 2023
| City | MHR | Annual change |
|---|---|---|
| Canberra | AU$ 680 | -2.2% |
| All capital cities | AU$ 620 | +12.7% |
Average rent for a unit in Australia
In terms of capital city real estate values, not much has changed. At AU$ 680 per week on average, Sydney is the most expensive city for potential tenants. Darwin (AU$ 550), Canberra (AU$ 560 per week), Brisbane (AU$ 560 per week), and Perth (AU$ 550 per week) are the next most expensive capital cities.
Despite laws prohibiting rent bidding, many applicants feel that they must offer to pay many months’ worth of rent in advance or bid more than the asking price in order to secure a rental property due to the fierce competition among tenants. The table below shows the median rents for units in capital cities as well as the annual percentage change that each market has seen.
Median unit rents in December 2023
| City | MUR | Annual change |
|---|---|---|
| Canberra | AU$ 560 | 1.8% |
| All capital cities | AU$ 590 | +18.0% |
Is there any relief?
Regional tenants have experienced some respite, as their weekly rent has remained constant at AU$ 500 since June. With a median of AU$ 580 per week, Western Australia and Queensland had the highest non-metropolitan rentals, however; these numbers represent increases of 16.7% and 11.5%, respectively, over the previous year. Those who rent in cities find it particularly difficult as the average weekly rent in capital cities rose by 13.2% from the previous year to AU$ 600.
Why is rent increasing in Australia?
Landlords have been under intense pressure to raise rent, partly because of the Reserve Bank of Australia’s recent rate hikes and the general rise in living expenses. Additionally, there haven’t been many rentals available. There are fewer housing units available due to the influx of new immigrants and professionals returning to the cities, and not enough new housing has been constructed. Naturally, rising prices follow from low supply and high demand.
Expected Rent Increase in Australia 2024
Tenants in Australia will have to pay high rents in 2024 due to a shortage of rental properties brought on by the country’s high immigration rate, which is rapidly increasing demand for housing. The desire of people to acquire new real estate has increased. Australia attracts immigrants who are looking for better living and educational opportunities. By 2024, it is projected that rental prices will have increased by approximately 7 to 10%. The home owner will gain a lot if the rental rates are raised. In Australia, the average weekly rent is AU$ 600.
Factors Influencing Rent Prices in Australia
Yes, it is likely that the issue of reasonably priced rentals will persist. Despite cyclical conditions that are slowing rent increases, rental values still have room to improve. It can be advantageous to implement housing reform strategies that raise the quantity of available houses in prime locations and set minimum rental requirements.
Interest rate effects on rental prices in Australia
In Australia, interest rates have gone up dramatically, which has affected a number of economic sectors. Among those affected are landlords, who are crucial participants in the real estate industry. Changes in vacancy rates and rental demand may have an indirect effect on landlords as a result of rising interest rates. An increase in interest rates drives up the cost of mortgages for would-be homeowners. If this leads to a decline in home purchases and an increase in demand for rental properties, landlords might benefit in the short term.
