In 2023, the average rent in Australia increased by 15%, and it is expected to continue rising by 7-10% in 2024. Perth are to experience the highest increase of 12-15%, while Brisbane and Sydney 7-10%, and Melbourne 6-9%.
The reasons for the rent increases are not hard to explain:
- Australia’s population grew by 560,000 people in the years 2022-2023, a growth rate of 2.2%. Perth had the highest growth rate at 2.8%, followed by Victoria (2.4%) and Queensland (2.3%).
- The supply of new houses is very limited, with the national residential vacancy rate being less than 1%.
- With a significant increase in home loan interest rates, many people who originally wanted to buy a house can no longer afford to do so, leading to more people opting to rent.
As a result, the residential rental yields in most Australian cities have increased, with Perth reaching almost 5.5%, Brisbane and Adelaide at 4.5%, and Sydney and Melbourne at less than 4%.
If you are a home buyer wanting to start owning your own home, or a property investor looking to capture the increasing rental yield, please feel free to contact us for a free consultation to map out an investing and/or financing strategy.
