News and Views
TasRents: anything remotely affordable is in high demand
In the quarter to June 2022 Tasmania recorded relatively moderate changes in rent prices compared to the last quarter, which is quite normal for this time of the year.
Tasmanian weighted median rent remained steady with $420 in March 2022 and $421 this quarter. This resembles the seasonal drop we used to see in June quarters, which was absent in the years of steep growth in 2019 and 2021. There was a drop in 2020, however the 2020 decrease was clearly attributed to the onset of the Covid-19 pandemic.
Median rents in Tasmania as a whole recorded a 0.0% quarter change. This means, that there were increases in some areas and decreases in others, but looking at the entire state rises and drops cancelled each other out.
One driver of increases during the June 2022 quarter were 1-bedroom properties in all regions of the state. In the Nort-West rents for 1-bedrooms properties increased from a median of $163 in the March quarter 2022 to $200 in the June quarter 2022. This is an increase of 23%. In Northern Tasmania the median 1-bedroom rent rose from $223 in March to $255 in June (14% increase) and in Southern Tasmania they increased by 13% from $287 to $325. High prices for 1-bedroom properties were even more pronounced in urban areas, with increases of 16% or $35 and 14.3% or $41 in Greater Launceston and Greater Hobart, respectively.
Increases in rents for 2- and 3-bedroom properties were predominantly observed in rural areas of the North West and the South of the state. The highest increases were found on the West Coast with 18% increase for 2-bedroom properties (note: small data size with between 10-29 bonds lodged) and 6% for 3 bedroom-properties. The Far South recorded increases of 17% (note: small data size) and 7% for 2- and 3-bedroom homes, respectively. In the Central South weekly rents for 2-bedroom properties rose by 16%, from $320 to $370 and in Greater Burnie they increased from $285 to $310 or 9% in just one quarter.
Minor decreases occurred in Hobart City and the Kingston Area, where rents for 2-bedroom homes fell by 1% and Inner Launceston, which recorded a 1% drop in rents for 3-bedroom properties. What does all this tell us? Perhaps that anything that is remotely affordable is in demand – rural properties away from all kinds of infrastructure and one-bedroom properties.
Find Tasmanian Rents here: http://tutas.org.au/publications/tasmanian-rents/