Rents have risen across Tasmania: report
Rental prices have grown across Tasmania to start the year. Picture: Supplied
THE amount of money needed to pay rent in Tasmania has inched higher throughout the start of the year.
In its latest quarterly report, Real Estate Institute of Tasmania figures showed that median rents had risen by $5 in Hobart, $30 in Launceston and $10 across the North West.
Meanwhile, vacancy rates remain at historic lows of 0.9 per cent in Hobart, 0.8 per cent in Launceston and 1.3 per cent in the North West.
Launceston rents have climbed significantly.
REIT president Michael Walsh said significant change on the rental front was hard to come by.
“There has been almost no change to the rental market story in our state, it remains as tight as ever with extremely low vacancy rates,” he said.
“Just like homes for sale, we have a supply issue in our rental sector with not enough available to meet demand.
“We need more investors in the marketplace to ease our supply problem.”
Of the major population centres, Mr Walsh said Launceston had the greatest percentage of investors compared to Hobart and the North West.
He said it was slightly more affordable to purchase property in Launceston and that rents are healthy from a homeowner’s perspective.
“Launceston has a purchase price versus rental income balance that could be seen as more attractive than in other parts of the state,” he said.
“However, you will see — when a rental home is up for review, and the rent may rise to meet the market — often tenants will have a look around at their options and if they can they will stay put.”
A three-bedroom in Hobart now costs over $500 per week to rent.
The March Quarter report found that a three-bedroom house in Hobart costs $520 per week while a two-bedroom other dwelling — such as a unit, apartment, townhouse — costs $440.
Over the quarter, that is a 4 per cent increase (three-bedroom) and a 4.8 per cent increase (two-bedroom). Assessed annually, that is rental growth of 10.6 per cent and 10 per cent.
In Launceston, a three-bedroom house costs $450 to rent while other dwellings fetched $360 with 20 per cent and 12.5 per cent annual growth.
North West rentals reached $360 and $295 with 12.5 per cent and 18 per cent annual growth.
The surge in property prices over the pandemic’s two-years has seen Tasmanian investment yields fall by about 1-1.5 per cent.
More investors are needed across the state to ease the rental shortage.
Mr Walsh said while investor activity in March “remained stable” more was needed to balance the market’s supply and demand problem.
“A lack of growth in our rental market continues to place extreme pressure on an already under-supplied market,” he said.
These figures come on the back of revelations that demand for Hobart rentals was higher in March than any capital city and that even in Tasmania’s most affordable first-time buyer hot spots, young Tasmanians are up against tough challenges to get a foot in the door of the market.