The cost of renting in regional markets has increased almost three times as much as capital city markets during the past 12 months.
The Corelogic hedonic rental value index, which tracks the combined value of rent estimates for all dwelling types, increased 9.6 per cent for regional rents, while capital city markets increased 3.3 per cent.
Corelogic head of research Eliza Owen said there had been an “extraordinary tightening” of regional markets.
^Source: CoreLogic
“Of the 25 regions analysed, total available rent listings have, on average, halved during the year,” she said.
“Across these regions, the average time a rental property spent on the market has declined from 25 days in the three months to April 2020 to 17 days during April 2021.”
Owen said the Gold Coast was the tightest market where the median amount of time a rental spent on the market was two weeks.
“The data suggests that tenants have to compete harder for rental accommodation in major regional centres, both in terms of their wallet and the pace of their decision-making,” she said.
Weekly asking rents: regional centres
| State | Region | Median Weekly Asking Rent | Year on year change in rent |
|---|---|---|---|
| NSW | Capital region | $450 | 2.3% |
| NSW | Central West | $390 | 10% |
| NSW | Hunter Valley exc Newcastle | $420 | 7.7% |
| NSW | Illawarra | $480 | 7.4% |
| NSW | Mid North Coast | $430 | 12.7% |
| NSW | New England and North West | $310 | 3.6% |
| NSW | Newcastle | $460 | 8.2% |
| NSW | Richmond-Tweed | $590 | 17.6% |
| Qld | Cairns | $380 | 6.4% |
| Qld | Central Qld | $340 | 15.3% |
| Qld | Gold Coast | $530 | 10.9% |
| Qld | Sunshine Coast | $550 | 15% |
| Qld | Toowoomba | $350 | 8.3% |
| Qld | Townsville | $350 | 6.7% |
| Qld | Wide Bay | $350 | 9% |
| TAS | Launceston | $400 | 11% |
| TAS | South East | $400 | 11.9% |
| Vic | Ballarat | $360 | 4.9% |
| Vic | Geelong | $420 | 6.9% |
| Vic | Hume | $375 | 7.4% |
| Vic | Latrobe – Gippsland | $350 | 8.6% |
| WA | Bunbury | $390 | 13.1% |
^Source: Corelogic
Owen said factors that influenced the regional market tightening included less people leaving the regions since the onset of Covid-19, more people moving to the regions, a boosted domestic tourism market and rising property values.
“Creating more affordable housing in regional Australia and major cities could ease rental conditions,” she said.
“Having well dispersed affordable housing options can also serve to restrict internal migration based on affordability constraints.
“But in an environment where government schemes have brought forward demand for private housing, social and affordable housing may also be an important source of activity for the housing-construction sector.”
Article Source: www.theurbandeveloper.com
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