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Three regions buck trend as rental price growth slows nationwide

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Rental price growth has slowed across most of Australia, according to the latest data from PropTrack, with three regions defying the national trend.

The median weekly advertised rent rose to $610 in the three months to September 2024, a 1.7 per cent increase from the previous quarter.

Capital cities saw weekly rents increase to an average of $640, up 1.6 per cent, while regional rents rose 1.9 per cent to $540 per week.

The annual growth rate of 7 per cent marks the weakest annual growth since September 2021.

Hobart, regional NSW and regional Tasmania were the only markets to experience stronger rental growth over the past year compared to the previous year, bucking the national trend.

Cameron Kusher, PropTrack’s director of economic research, said the firm expects price growth to continue slowing in the coming months.

“With more stock available for rent, and the cost of renting rising at a pace above inflation over recent years, the capacity to pay rent is now impacting demand,” Mr Kusher said.

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Capital city rents increased 6.8 per cent over the year, the weakest growth since December 2021, while regional rents posted higher increases at 8 per cent year-on-year.

Unit rents continue to outpace house rents, growing at 9.1 per cent and 6.9 per cent respectively, narrowing the gap between median rents in the two categories to just $20 per week.

Sydney remains the most expensive capital city for renters, with a median advertised rent of $730 per week, unchanged over the quarter and 5.8 per cent higher over the year.

Melbourne has slipped to become the second cheapest city for renting, at $570 per week, just after Hobart.

Despite the slowing pace of rental growth and increased stock availability, Mr Kusher noted that vacancy rates remain very tight.

However, he anticipates “more balanced conditions in the coming months” as the market adjusts to changing economic conditions.

The data suggests a shifting rental landscape across Australia, with most regions experiencing a slowdown in price growth while a few areas continue to see stronger increases.

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