Rental prices are up across the board – but they’ve exploded in these suburbs

Australia’s worsening rental crunch is seeing extremely high demand clash with very low supply, pushing prices upwards across the board.

At a national level, the latest PropTrack Rental Report reveals prices are up 7% in the year to June 2022 – but in dozens of suburbs, the rate of growth is significantly higher.

In Clontarf on Sydney’s Northern Beaches, the median weekly rent has skyrocketed by 41.8% in just 12 months, while in Burraneer in the Sutherland Shire it’s jumped by 33.3%.

Or take Brookfield, west of Brisbane – the typical rent there is up a whopping 41.4% year-on-year.

And in Victoria, normally relaxed rental markets in locations like Shepparton, Bendigo, and the Gippsland region have surged by 20% or more.

Finding a rental property in many parts of the country is difficult at the moment due to very low supply and high demand. Picture: Getty

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"Overall, the rental market is currently extremely tight, with many people looking for rental properties at a time when supply remains insufficient," said Cameron Kusher, director of economic research at PropTrack.

New PropTrack data has charted the areas with the biggest lifts in median weekly dwelling rents in the past year.

These are some of the most staggering results.

New South Wales

Some of the biggest growth markets in NSW were in lifestyle-rich locations that proved popular during Covid-19 with those in search of a sea- and tree-change.

Killcare Heights on the state’s Central Coast saw its median weekly rent explode by 72.6% in the 12 months to June, going from $475 to $820.

Church Point on Sydney’s Northern Beaches rose by 68% year-on-year, with the median weekly rent of $923 rising sharply to $1550.

The median weekly rent in the eastern Sydney suburb of Chifley skyrocketed by 39.7%, going from $788 to a staggering $1100 in just a year.

James Daniel, head of leasing at NG Farah, said the local rental market had been on something of a rollercoaster ride in the past year.

“During the Covid lockdown, interest was low and rental returns remained flat,” Mr Daniel said. “But when the lockdown ended, we saw a surge in interest, especially in the January to March quarter.”

Strong property price growth, which locked a lot of buyers out of the market, is a big driver of demand for rental properties, he believes.

“Those people may then turn to renting to make things more affordable and to be able to stay in the area they want.”

Suburbs with strong lifestyle appeal have exploded in popularity. Picture: Getty

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Houses are particularly sought-after compared to units at the moment, he added.

Over the coming year, Mr Daniel expects rental prices to continue rising locally as further expected rate hikes has some would-be buyers holding off.

Where NSW rents are skyrocketing

Queensland

A number of Queensland’s biggest movers were in regional pockets, which saw rental supply dwindle during a near-record property market boom.

Rainbow Beach in the Wide Bay region, near Gympie, saw its median weekly rent jump from $300 to $518 in a year, up 72.5%.

Cannon Valley in central Queensland rose 68.3% from $520 to $875 per week, on the back of renewed momentum in the resources sector.

Rents right across South East Queensland have skyrocketed. Picture: Getty

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Rental markets on the Sunshine Coast and Gold Coast rose significantly during Covid, thanks to almost unprecedented levels of interstate migration.

Take Pelican Waters, which saw its median weekly rent increase 34.5% year-on-year, from $580 to $780.

Meanwhile, Palm Beach recorded a 25.9% increase, with the median weekly rent jumping from $540 to $680.

Where Queensland rents are skyrocketing

Victoria

In Victoria, the lure out of Melbourne in the wake of extended lockdowns saw coastal and regional areas boom.

The prestigious pocket of Portsea on the Mornington Peninsula, where many city slickers fled to during the pandemic, saw its median weekly rent skyrocket by 42.1%, from $950 just 12 months ago to $1350 currently.

Outer-suburban areas have also seen sharp rental price increases, likely driven by those in search of affordability.

Macedon, northwest of Melbourne’s CBD, saw its median weekly rent jump from $475 to $650, to record a 36.8% year-on-year increase.

Rental markets in a number of regional Victorian areas have seen significant growth. Picture: Getty

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The outlook is for a further deterioration in conditions, particularly in inner-city suburbs, Mr Kusher said.

“With overseas and interstate migration returning with borders now reopened, it seems likely that rental conditions will tighten further over the coming months – especially in Melbourne,” he said.

“Rental demand and prices dropped in Melbourne throughout the pandemic but are now rebounding rapidly.”

Where Victoria rents are skyrocketing

South Australia

South Australia has also had an influx of new residents from interstate, seeing its property market become one of the stronger performers nationally, and rents have risen sharply.

The Adelaide suburb of Hazelwood Park has seen its median weekly rent jump from $365 last year to $600 currently, up 64.4%.

Across the capital, demand for rental properties has far outstripped supply and any homes that hit the market are usually snapped up quickly.

“Rental days on site are at historic lows in Adelaide,” Mr Kusher said. “More broadly, the level of rental growth regionally has been the greatest in South Australia, so there is little relief anywhere.”

Adelaide's rental market is under particular strain. Picture: Getty

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A number of areas in lifestyle regions such as the Barossa have seen significant demand, which coupled with a shortage of properties has pushed rents up.

Take Angaston, where the median weekly rent has hit $338, up 32.4%, or Lydoch, where a 22.9% rise has lifted the median weekly rent to $430.

Where South Australia rents are skyrocketing

Western Australia

One of the biggest movers in Western Australia is the inner-Perth suburb of Dalkeith, which has seen a 38.9% year-on-year surge in its median weekly rent.

A year ago, a typical tenant might have been paying about $900 per week for a dwelling, whereas now it’s a whopping $1250.

Georgina Walsh is a senior property manager with Marron Real Estate and described the past year as “a ride”.

“Last August, we couldn’t fit enough interested parties into a home open because of Covid restrictions, then in summertime people were selling to take advantage of the rising market,” Ms Walsh said.

“Now, Covid is still lurking in the background and rates are on the move, meaning sales are starting to slow, and people are unsure which way to move.”

There is little relief in sight for struggling tenants. Picture: Getty

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Strong demand for rental properties is coming from those who’ve recently sold their homes to cash in on market growth, but who aren’t sure when or where they want to buy.

“They’re competing with tenants who are perhaps building their dream home but facing construction delays,” she said.

A skilled worker shortage in Western Australia is likely to see an influx of interstate and overseas migrants, putting further pressure on housing markets, she said.

“If the Reserve Bank keeps moving rates skyward… it doesn’t look as though there are going to be any winners in the rental market.”

Where WA rents are skyrocketing

A look at the other states

Where Tasmania rents are skyrocketing

Where Australian Capital Territory rents are skyrocketing

Where Northern Territory rents are skyrocketing