Rent prices in Australia’s capital cities had a historic rise in the last year

Why are rent prices rising? New data released this found rent prices in capital cities has had record increases this year. Here's why
are rent prices increasing in australia

The cost of renting in Australia’s capital cities increased by 11.7% overall in the year up to April 2023.

CoreLogic, the property analyst firm that compiled the data, said it was the highest rise they had ever recorded.

The return of overseas migrants and international students contributed to the spike in demand for renting.

Sydney and Perth had the largest annual increase.

How much capital city rents increased in the past 12 months:

Capital city Median weekly rent Year-on-year % change (to April 2023)
Perth $583 13.2%
Sydney $711 13.1%
Brisbane $604 11.7%
Melbourne $535 11.6%
Adelaide $534 10.9%
Darwin $587 4.3%
Hobart $567 3.9%
Canberra $677 -0.7%

Why are rent prices rising?

A gradual rise in interest rates has directly contributed to surging rent prices across the country.

Many landlords have passed on the extra amount charged through interest rates to their tenants.

The return of migrants and international students to Australia has also increased housing demand.

The areas in Australia with the largest rent increases:

City Area Median rent % change
Sydney Botany $902 26.3
Melbourne Melbourne City $647 24.8
Sydney Inner City $923 24.4
Sydney Eastern Suburbs – South $946 22.5
Sydney Kogarah – Rockdale $706 22.1
Sydney Canterbury $610 21.3
Sydney Strathfield-Burwood-Ashfield $699 20.7
Brisbane Inner City $664 20.2

What about the regions?

Rent prices went up by 6% across all regional areas, with the largest increases in regional WA (8.6%) and Queensland (8.1%).

Rent for houses in regional WA, SA and Queensland all rose by 7% or more, while rent for units surged in regional WA (15%) and Queensland (11.1%).

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