The average national house rent is up 4% on late 2019, according to data from MRI Software, which tracks real-time rental performance across 4000 real estate offices.
However, national apartment rents have fallen by 7% over the same period, due to factors such as border closures and a lack of business travel.
The average time taken to find a new tenant for an apartment has also increased from four weeks to over six weeks, while remaining stable at five weeks for houses.
There are 929 words left in this subscriber-only article.
Start your free 14-day trial today!
Josh Symons from MRI notes that working from home has had an impact on house rent charges, with people seeking more space.
From The AFR:
“Many people have been looking to get more space so they have that work-life balance even while working from home,” Mr Symons said.
“I think another critical point is that expats have returned, moved back into their houses and pushed those tenants out into the market.
“Because you have got this inflection point of people wanting more space, demand has been rising while supply has been decreasing”…
Melbourne’s apartment rents have steadily declined in the past 18 months, falling 17 per cent from an average of $493 pre-COVID-19 to $412 in early June.
Apartment rents fell by 8 per cent in Sydney and 4 per cent in Brisbane.
CoreLogic’s latest rental data is less extreme showing stronger rental growth for detached houses than units, alongside negative annual unit growth across Melbourne and Sydney:
This makes sense given the recent building across high-rise apartments, which have also been hit hardest by the collapse in immigration.