Apartments in Noosa Heads and Sunshine Beach have topped the list of the fastest-growing rental markets in the country during the past 12 months to September, with rents soaring by as much as 40 per cent, as tenant demand for homes in lifestyle locations shows no signs of easing up, data from CoreLogic shows.
Across the regions, rents have climbed by 12.5 per cent – the highest annual growth on CoreLogic’s record as the shortage of stock amid high demand pushed rents through the roof.
Nationally, rental rates have jumped by 8.9 per cent year-on-year, the fastest growth in dwelling rents in more than 13 years.
CoreLogic’s research director, Tim Lawless, said a desire for detached housing and lack of supply due to previously historically low levels of investor activity had fuelled the strong rental growth.
Rents for houses in Broome and Cable Beach in Western Australia have surged by 37.7 per cent and 33.3 per cent respectively. Meanwhile, Suffolk Park and Byron Bay in the Richmond-Tweed region of NSW notched 31.6 per cent and 30.4 per cent growth respectively.
In Sydney, Freshwater and Palm Beach recorded the biggest jump in rents in the past year, rising by 24 per cent and 23.1 per cent respectively. Houses there are fetching about $1300 in rent per week.
Houses in Canterbury and Kew in Melbourne’s inner east recorded 10.8 per cent and 9.5 per cent rental growth respectively, while Mount Eliza on the Mornington Peninsula notched a 12.5 per cent rise.
Despite the strong showing in the past year, rental growth had eased slightly during the three months ending September as affordability started to bite, said Mr Lawless.
The national rental index had risen by 1.9 per cent, lower than the 2.1 per cent recorded in the June quarter.
Brisbane and Sydney were the strongest rental markets during the quarter with median rents rising by 2.6 per cent and 2.3 per cent respectively.
Melbourne gained 1.2 per cent, Adelaide and Hobart were up by 1.6 per cent each, Canberra by 1.5 per cent, Darwin by 1.7 per cent and Perth by 0.3 per cent – the slowest across all capitals.
“Rental affordability is becoming more challenging as rents rise at more than seven times the speed of wages, which is probably causing renters to rethink their tenancy options,” said Mr Lawless.
“From a supply perspective, the rise in investor activity would be gradually adding more rental stock to the market.”