Rents continue to climb
With all the talk recently about the tight rental market and the impact of rising rents on the cost of living for many Australians, I thought the latest rental data from Corelogic provided a timely insight into what has been happening around us in 2024.
As I mentioned in LAST WEEK'S POST, it’s not just property prices that have been rising, with over 99 per cent of Melbourne’s suburbs recording a rise in median rents over the past year.
However, Corelogic’s latest Rental Market Report to the end of March 2024 provided further information on what has been happening.
The key takeaways included:
- The national rental index rose by 2.8 per cent in the first quarter of 2024. This was the fastest quarterly growth rate recorded since the first half of 2022.
- Once again, rents on units seem to be rising slightly faster than rents on houses, recording 2.9 per cent versus 2.7 per cent in the March quarter.
- Melbourne’s rents rose faster than the national average. The quarterly rise to March this year was 3.57 per cent, which is the highest growth recorded since the same period in 2015.
- For those with an eye on longer term trends, Corelogic say that Melbourne’s average rents for houses rose by 10.9 per cent annually, whilst units recorded an annual rise of 9.4 per cent.
Of course, the data for the first quarter of each year tends to be more bullish as this period usually experiences a seasonal lift when more renters look to move house at the start of each year. However, theses numbers are strong no matter how you look at them.
I’m fairly sure that figures like these will come as no surprise to anyone who is currently renting in Melbourne, particularly if you have been looking at moving house in 2024 and trying to find a new place to rent. It’s tough out there! But as is so often the case, the same numbers will be good news for anyone who owns a rental property, or who is planning to purchase one.
One word of caution if you are considering becoming a property investor…just because rents are rising doesn’t mean EVERY property is a good investment. So be sure to get experienced and objective advice before you commit to becoming a rental provider.
Our team at Barry Plant Thomastown has decades of experience in this field and are always happy to help, whether you need guidance in finding the right property or you need someone to manage that investment efficiently and professionally. So don’t hesitate to give us a call this week if you’d like an obligation-free chat, on 9466 3233.
Regards,
Con Constantinou
Barry Plant Thomastown