Australian Real Estate Market Sees Rising Rents Outpace Property Prices
The Real Estate Institute of Australia (REIA) has released its Real Estate Market Facts report for the March quarter of 2024. The report highlights the continued growth in both house prices and rents in the Australian residential housing market. This article will summarize the key findings of the report, with a focus on the Tasmanian market.
Key Findings
Property Prices
- The national median price for houses increased by 1.9% to $1,026,903 over the quarter.
- Sydney continues to have the highest median price for houses at $1,627,625, while Darwin has the lowest at $561,500.
- Median prices for houses increased in Sydney, Melbourne, Brisbane, Adelaide, Perth, and Darwin, but decreased in Canberra and Hobart.
- Over the past year, the national median price for houses increased by 7.6%.
Other Dwellings
- The national median price for other dwellings increased by 1.9% to $670,667.
- Sydney has the highest median price for other dwellings at $806,137, while Darwin has the lowest at $403,000.
- Median prices for other dwellings increased in all capital cities except Canberra and Darwin.
- Over the past year, the national median price for other dwellings increased by 7.2%.
Rent Increases
- The national median rent for 3-bedroom houses increased by 2.8% to $601 per week.
- The national median rent for 2-bedroom other dwellings increased by 6.9% to $624 per week.
- Median rents increased in all capital cities for both house and other dwellings, except for Hobart and Darwin.
- Hobart and Darwin experienced a decrease in median rent for other dwellings.
Vacancy Rates
- Vacancy rates nationally sat at 1.4%, well below the desirable 3%.
- Sydney had the highest vacancy rate at 1.5%, while Perth had the lowest at 0.4%.
- Vacancy rates increased in Sydney and Hobart, stabilized in Brisbane and Adelaide, and decreased in Melbourne, Perth, Canberra, and Darwin.
Tasmanian Market
- Hobart experienced a decrease in median prices for houses (-3.4%) and an increase in median prices for other dwellings (0.5%).
- Hobart also saw an increase in vacancy rates to 2.4%.
- Despite the decrease in house prices, Hobart remains an attractive market for investors due to its relatively affordable median prices.
The REIA's Real Estate Market Facts report for the March quarter of 2024 reveals a continued growth in both house prices and rents in the Australian residential housing market. While property prices increased across most capital cities, rents saw even more pronounced increases. The Tasmanian market, particularly in Hobart, experienced a mixed trend with a decrease in house prices but an increase in other dwelling prices. Investors should take note of the opportunities in the Tasmanian market, given its relatively affordable median prices. For more detailed information, please refer to the original report by the Real Estate Institute of Australia.
Reference: Real Estate Institute of Australia. (2024). Real Estate Market Facts March Quarter 2024.