An increase in rental properties on the market is reducing competition and giving more negotiating power to renters after years of tight supply and rising costs.
In certain areas within our larger capital cities, analysis shows that renters are securing significant discounts worth more than $50 a week compared to the typical advertised prices in those areas.
According to PropTrack's latest rental report, rent price growth has slowed to its lowest rate since mid-2021.
Following consecutive annual December increases of 7.1% in 2021, 15.5% in 2022, and 11.5% in 2023, rental prices have risen by just 6.9% compared to the previous year.
The uptick in rental availability has been a driving force of price moderation, particularly in our capital cities, with new and total listings up 7.0% and 14.6%, respectively, since December 2023.
The larger increase in total listings compared to new ones indicates that more properties are remaining unleased.
Not only has the rise in overall listings brought more balance to the market but it has also prompted a higher rental turnover rate as more renters are willing to vacate and move properties.
The slowdown in population growth, increase in shared living arrangements and potential shift of renters to the buy market, reflected in an increase of first-home buyer loans, has also contributed to the stabilisation of prices.
While these changing conditions benefit all renters, those in select areas are finding themselves in an even better position, leasing properties for significantly less the median advertised price.
| Local government area (LGA) | Capital city | Median rent paid | Median advertised rent | $ difference | % difference |
| Bayside | Melbourne | $680 | $798 | -$118 | -14.8% |
| Lockyer Valley | Brisbane | $480 | $550 | -$70 | -12.7% |
| Nillumbik | Melbourne | $555 | $630 | -$75 | -11.9% |
| Brisbane | Brisbane | $580 | $650 | -$70 | -10.8% |
| Fairfield | Sydney | $580 | $640 | -$60 | -9.4% |
| Lane Cove | Sydney | $725 | $800 | -$75 | -9.4% |
| Moonee Valley | Melbourne | $500 | $550 | -$50 | -9.1% |
| Woollahra | Sydney | $900 | $990 | -$90 | -9.1% |
| Boroondara | Melbourne | $595 | $650 | -$55 | -8.5% |
| Manningham | Melbourne | $625 | $680 | -$55 | -8.1% |
By comparing median weekly rents paid by tenants, sourced from new rental bond data, and median advertised weekly rents on realestate.com.au across local government areas (LGAs) in our three largest capitals, we were able to determine where renters were securing rentals at the largest discount.
The greatest difference between median rent paid and advertised rents was in Bayside and Nillumbik councils in Melbourne and Lockyer Valley council in Brisbane.
Renters typically paid 15%, 13% and 12% less than the advertised price to lease a property, respectively.
In the Brisbane, Fairfield and Lane Cove LGAs, renters also leveraged negotiation opportunities. The median rent they paid was $60 to $75 less per week compared to what was typically advertised on-site.
Those renting in Moonee Valley, Woollahra and Boroondara councils typically paid 9% below the advertised rates.
The fact that properties are now renting for much less than advertised in these particular areas reflects a favourable shift in the market for renters following years of limited options, strong competition and rapid rent increases.
Not only has the growth in supply and decrease in competition led to a slowdown in rent increases, but has also given renters confidence to negotiate and relocate.
While the number of rental listings is still below the previous 10-year average (up to 2022), we expect the market to become more balanced and prices to continue moderating if current supply and demand trends persist.
