Yearly rent surge shock

RENTS in two Hobart suburbs have increased by 20 per cent or more in the past year.

New data from realestate.com.au has revealed a 25 per cent increase in weekly home rental prices in Taroona and a 20 per cent increase year-onyear in West Moonah.

Renters pay a median price of $420 per week and $525 per week in these suburbs.

Today, there are three homes listed for rent in Taroona and six in West Moonah. Brighton, Lutana and South Hobart also recorded rental price increases of between 13 per cent and 17 per cent in the past 12 months.

Over the same period, Battery Point, Hobart, Taroona, North Hobart and Sandy Bay were the most expensive suburbs to rent, each in excess of $500 a week.

Dynnyrne, West Hobart, Geilston Bay, South Hobart and Howrah recorded median rental figures between $460 and $498 in the past 12 months.

PRDnationwide director and research manager Tony Collidge said the busiest time of year in the rental sector was off to a rough start with supply unable to meet demand.

Mr Collidge said at the start of January, greater Hobart had 334 properties available for rent and half of these had a weekly rental price above $500.

“There were only 72 offering rents below $400,” he said. “My company manages 800 rental properties and we had just two vacancies.”

Mr Collidge said one vacancy was available at $400 per week and almost 150 attended the inspection in Goodwood.

Chief economist at realestate.com.au Nerida Conisbee said Hobart – at 7.59 per cent year-on-year – has recorded the strongest rental increase in Australia’s capital cities.

“A recent article in The Economist outlined that an increase in housing costs of 10 per cent led to an 8 per cent increase in homelessness and rents in Hobart have increased by over 10 per cent over the past 18 months,” she said.

The latest SQM Research vacancy rate figures showed Hobart has the lowest rate of the capital cities at 0.6 per cent in December. The national rate is 2.5 per cent.