Two thirds of Hobart rents jump higher

Eleanor Creagh says rents are moving higher, but at a slower pace. Picture: Supplied

Two in three Hobart suburbs have higher rents now than they did three months ago.

And one suburb, Berriedale, was among the largest price increases in Australia.

New PropTrack quarterly rental figures show a $50 per week increase in the cost of a Berriedale house between August and May.

The 10 per cent increase was the eighth-largest increase in the nation.

For renters looking in this area, pickings are slim, with only two units available today, and no houses. The two-bedroom units are priced $420 and $460 per week.

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No.4/4 Myella Dr, Berriedale is asking $460 per week rent. Picture: realestate.com.au

No.14 Myella Dr, Berriedale seeking $420 per week rent. Picture: realestate.com.au

By quarterly percentage increase, houses in Austins Ferry, Hobart City and Battery Point had the next largest rent upticks — between 7.1 per cent and 8.5 per cent.

Prices in these three suburbs increased by $50 per week.

Units in West Hobart climbed 4.3 per cent higher to reach $490 per week. Followed by Lindisfarne (3.6 per cent), and Mount Stuart (3.5 per cent).

In nine greater Hobart suburbs, rents did not increase or decrease.

In nine others, the rental ask fell by between 0.9 per cent for a Sorell house to 4.3 per cent less for a New Norfolk house.

SQM Research figures show the rental vacancy rate in Hobart in August was 0.5 per cent, equal lowest in Australia with Darwin.

SQM managing director Louis Christopher said strong demand had pushed the Hobart rate down, with vacancies declining to just 144.

At the same time last year, Hobart had 318 rentals available.

House rents in Berriedale, Austins Ferry, Hobart City and Battery Point increased by $50 per week.

PropTrack economist Eleanor Creagh described a vacancy rate below 1 per cent as “emergency conditions”.

When rental markets are incredibly tight, this puts upward pressure on rents, she said.

With rents at record highs nationally, a reduction in the rental median in the years ahead seems unlikely.

“Look, we can’t rule out ever at this stage – I wouldn’t want to say that,” Ms Creagh said.

“But at the moment, we’re continuing to see that rents are still moving higher but at a much slower pace.

“Without a bigger supply response, it’s not likely that we’ll see rents moving backwards.”

PIPA chair Lachlan Vidler.

A national Property Investment Professionals of Australia survey found 42 per cent of sold properties remained in the rental pool, while 37 per cent were purchased by owner-occupiers and 25 per cent by first-home buyers.

PIPA chair Lachlan Vidler said once a property leaves the rental market, “it rarely returns”.

“We’re watching the slow dismantling of Australia’s rental supply, and tenants are paying the price through rising rents and reduced availability,” he said.

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