Highrise Spring Hill

The latest CoreLogic data shows Australia’s rental market is finally catching its breath after a period of unprecedented growth. Here’s what you need to know as a property investor or potential homebuyer.

Key Insights:

  • National rent values rose just 0.4% in December quarter – the smallest Q4 increase since 2018
  • Annual rental growth slowed to 4.8% in 2024, down from 8.1% in 2023
  • Since COVID, rents have jumped by 36.1% ($171/week at the median level)

 

What’s Driving the Change? The slowdown comes down to two main factors:

  1. Affordability reaching its limits (renters now spending about 33% of pre-tax income on rent)
  2. Market forces balancing out (increased investor lending and normalizing migration levels)

 

City by City Breakdown:

  • Sydney remains Australia’s priciest rental city ($773/week)
  • Perth has surprisingly taken second place ($695/week)
  • Hobart offers the most affordable capital city rents ($554/week)

 

What This Means for Investors: Despite the cooling rental growth, gross rental yields remain stable at 3.7% nationally. This suggests property investment can still offer solid returns in the right locations.

Looking to Navigate the Property Market? Whether you’re considering an investment property or looking to buy your own home, our team at Time Home Loans can help you secure the right financing solution. With access to 60+ lenders and a 95% loan approval success rate, we’re here to make your property journey smoother.

Want to discuss your property investment plans? Let’s chat about your options!

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