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Big rent rises in Adelaide as weekly payments hit record high

Adelaide rents jumped by the biggest amount in the country during the first quarter of 2024, with the average national rent for a house hitting $630 amid the steepest quarterly hike for 17 years.

Apr 11, 2024, updated Apr 11, 2024
Photo: AAP

Photo: AAP

The biggest quarterly changes were recorded in Adelaide, where asking rents for houses rose 5.4 per cent, according to real estate platform Domain.

Perth was second with a 4.8 per cent increase, followed by Melbourne (3.6 per cent), Brisbane (3.3 per cent) and Sydney (2.7 per cent).

Vacancy rates also fell in every major city except Hobart, with Sydney, Melbourne and Perth at record lows.

Asking rents started rising again in the first quarter as the typically busy start-of-year changeover period collided with an already hot market.

The median cost of renting a house in the combined capitals reached a new record of $630 a week, and recorded its sharpest quarterly gain in 17 years.

Advertised house rents rose five per cent over the quarter in the nation’s urban centres, with units also up a solid 3.3 per cent to a new record median asking price of $620.

Renters in most capital cities have been forking out more to keep a roof over their heads because of an acute shortage of available properties during a period of booming population growth.

Domain chief of research and economics Nicola Powell said the rental market usually experienced intense churn in the first quarter as the year got underway.

She said these usual seasonal factors landed at a time of limited supply and high demand, intensifying its usual effect.

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“This imbalance has consequently fuelled a renewed acceleration in rental price growth,” she said.

But Powell was confident the rental market would find a tipping point in 2024 as population growth slowed.

“We are seeing the number of prospective tenants per rental listing ease, suggesting some pressure has been lifted,” she said.

-with AAP

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