Over the past few years, renters have faced rising prices and stiff competition in securing rental properties.
However, Megan Lieu (pictured above), an economic analyst at REA Group’s PropTrack, reported a significant change.
“From 2021 to 2024, rental markets tightened considerably,” Lieu said.
But recent trends suggest a shift, with renters now often paying less than the listed rent prices due to a combination of increased supply and moderated demand.
Several key factors contributed to the stabilisation and reduction of rent prices:
In Sydney, data comparison between median advertised weekly rents and actual rents paid shows that in many areas, renters are securing leases for less than the advertised prices.
“Tenants typically paid less than advertised rent prices in 23 out of 34 of Sydney’s local government areas in the September 2024 quarter,” Lieu said.
This indicated a robust negotiation advantage for renters, a stark contrast to the competitive market of early 2023.
Similarly, in Melbourne, the trend continues with renters negotiating prices significantly below the advertised rates in many councils.
“Bayside, Nillumbik, and Moonee Valley councils recorded the greatest variance,” Lieu said, highlighting the shift from a market where overbidding was common to one where negotiation is in the renter’s favour.
Brisbane also reflects this trend, with rents often settling below advertised rates across the board.
The gap between listed and actual rent prices is particularly notable in areas like Brisbane and Lockyer Valley, indicating a broad-based shift in the rental market dynamics, PropTrack reported.
The current trends in Australia’s rental market are providing renters with unprecedented leverage, resulting in more favourable rental terms.
This shift is likely to continue if the current conditions persist, potentially leading to a more balanced market and slower rent price increases in the future.
For more details, see this report from PropTrack.
