Nicola Powell. A trend that has earmarked the year-to-date is that rental prices continue to track upwards.
Unit prices leapt up $30 across the year to reach a median rental price of $400 a week based on the properties leased over the winter quarter. Family homes were slugged an extra $20 a week compared to winter last year to reach a median rental price of $480 a week.
Rental prices have been pushed higher by the shrinking supply of new rental listings. Over the winter quarter almost 500 fewer listings were advertised compared to the same period the year prior. A total of 3442 properties were listed on allhomes.com.au, a drop of 12.7 per cent compared to the winter quarter last year.
Canberra and Queanbeyan rental market report for winter. Photo: Allhomes
It is this easing supply of new rental properties that has helped to shave nine days off the time a property spent on the market compared to last year. Properties spent on average 28 days on the market over the winter quarter, this is calculated from the time listed on allhomes.com.au to the time marked as leased.
The supply may have fallen but demand is also on the decline. The latest Allhomes data shows the number of properties leased over the winter quarter dropped by 11.1 per cent compared to the same period the year prior, with 3439 properties leased, a staggering 429 fewer active tenants in the market.
Falling demand could be an indicator that some tenants are now homeowners. However, the latest ABS housing finance data (July 2016) shows first homebuyer numbers did slip over the initial two months of winter. The tough task of saving the lump sum deposit for a first time buyer has become impossible. It has been made harder as rental prices increase meaning any spare cash is now being swallowed up by higher rents.
Tenants with expiring rental agreements should be prepared that as leases are renewed landlords could adjust prices accordingly. It is important to note a price adjustment should be received in writing and with at least eight weeks notice prior to the lease renewal or for any hike in price. Tenants should also be aware rental prices might continue to creep higher as the year unfolds but landlords can only move prices upwards once every 12 months.
Nicola Powell is a property expert for Allhomes. Twitter: @_DataGen. The MIX106.3 Real Estate Show, Saturdays, 9-10am.