RENTS ON THE RISE
JARRAD BEVAN
ADELAIDE, Perth, Brisbane and Melbourne — each of these cities have cheaper rents than Hobart.
In its latest Quarterly Rental Review, CoreLogic found Hobart’s median dwelling rent was $486, which had grown by 2.2 per cent over the month, 6.1 per cent quarterly and 3.8 per cent annually.
Alongside Darwin and Perth, Hobart’s monthly and quarterly figures were one of the strongest results in the nation.
Typically Hobart houses record more growth than units, but in the March quarter unit rental rates climbed 6.8 per cent higher while houses were slightly behind at 6 per cent.
Compared annually, rental rates are up by 4.1 per cent (houses) and 2.8 per cent (units).
The 10-year change shows gigantic growth in the southernmost capital, a nation-leading 42.9 per cent for house rents and 44 per cent for units.
Gross yields for Hobart dwellings have dipped compared to the March quarter of 2020, from 5.02 per cent to 4.5 per cent. However, Hobart’s yield remained second only to Darwin, and very similar to most capitals aside from the two majors, with Sydney’s yield 2.74 per cent and Melbourne 2.92 per cent.
Hobart was also ahead of the national yield of 3.55 per cent.
Its median rent was also $20 higher than the national figure.
CoreLogic found that national rental rates had risen by 3.2 per cent over the first quarter of the year, which was the largest quarterly increase since May 2007.
CoreLogic research director Tim Lawless said while rents were rising at a fast pace, the headline hid the diversity of conditions around the country.
“Although rents are generally rising, housing values have been rising at a faster rate, which has seen yields compress,” he said.
Meanwhile, March quarter Consumer Price Index figures have shown that the rental market has continued its recovery from the impact of the COVID-19 pandemic in most capital cities.
Real Estate Institute of Australia president Adrian Kelly said Hobart had the largest increases of the capital cities at 1.1 per cent for the quarter and 1.5 per cent annually.
“The CPI figures for March tell us that there will be no pressure on interest rates for some time and that the rental market is improving,” Mr Kelly said.
The latest Real Estate Institute of Tasmania rental figures show a shortage of rental accommodation, particularly in
Tasmania’s northern capital. Launceston’s vacancy rate in the March quarter was just 1.3 per cent, the lowest figure that the REIT has on record for the city.
It was a similar story in Hobart with vacancies dropping to 1.7 per cent, while North West centres came in at 2.1 per cent, which was also historically low.
Rents rose across all of the regions in a range of $5 to $30 per week compared to the same time last year.