Rent growth shows signs of a slowdown as renters and investors reassess

After strong yields in recent years, rent growth is set to slow across Australia next year, according to new data.

Research by property data and analytics provider CoreLogic shows after 35 consecutive increases in rent values to July this year, they have begun to slow in recent months.

The trend is most obvious in regional areas where rent values have been slowing since April last year and appear to have flattened out. In regional Tasmania, where data from 40 suburbs was analysed, rents have fallen by 47.5 percent. This was followed by regional NSW, where of the 353 suburbs analysed, 38.4 percent have recorded a decrease in rents. However, data shows the capitals have also been impacted, with more than 90 percent of Hobart suburbs recording a fall in rent over the past quarter, followed by Canberra at 88.9 percent. In Sydney’s suburbs, there’s a strong contrast between rent values for houses and apartments, with the former recording a fall of 19 percent, while apartment rent values fell just 6.9 percent.

CoreLogic Australia head of research Eliza Owen said there were several factors at play signalling that the trend would continue into 2024. A predicted decline in interest rates could encourage more investors into the market, leading to an increase in the rental supply and therefore lower rent growth. More first homebuyers might also be ready to enter the property market as confidence around the cash rate grows.

Slowing income growth, which was strong during the pandemic, could also lead some renters to reassess their decision to move into more spacious single households and back into more affordable share house options, freeing up more rental stock.

Apartments continue to represent the best yield compared with houses for investors, with significantly lower falls in rents in all Australian capitals, with the exception of Canberra and Hobart where they are in par with corresponding falls in rents for houses.

Long-term Sydney residents always had handful of not-so-glamourous nicknames for the building on the corner of Cleveland and Baptist Streets straddling Redfern and Surry Hills, but after a modern rebirth that’s all changed.

Once known as “Murder Mall” or “Methadone Mall”, the 1960s-built Surry Hills Shopping Centre was a magnet for colourful characters and questionable behaviour. Today, however, a $500 million facelift of the site — alongside a slow and steady gentrification of the two neighbouring suburbs — the prime corner property has been transformed into a luxury apartment complex Surry Hills Village by developer Toga Group.

The crowning feature of the 122-apartment project is the three-bedroom penthouse, fully completed and just released to market with a $7.5 million price guide.

Measuring 211sqm of internal space, with a 136sqm terrace complete with landscaping, the penthouse is the brand new brainchild of Surry Hills local Adam Haddow, director of architecture at award-winning firm SJB.

Victoria Judge, senior associate and co-interior design lead at SJB says Surry Hills Village sets a new residential benchmark for the southern end of Surry Hills.

“The residential offering is well-appointed, confident, luxe and bohemian. Smart enough to know what makes good living, and cool enough to hold its own amongst design-centric Surry Hills.”

Allan Vidor, managing director of Toga Group, adds that the penthouse is the quintessential jewel in the crown of Surry Hills Village.

“Bringing together a distinct design that draws on the beauty and vibrancy of Sydney; grand spaces and the finest finishes across a significant footprint, located only a stone’s throw away from the exciting cultural hub of Crown St and Surry Hills.”

Created to maximise views of the city skyline and parkland, the top floor apartment has a practical layout including a wide private lobby leading to the main living room, a sleek kitchen featuring Pietra Verde marble and a concealed butler’s pantry Sub-Zero Wolf appliances, full-height Aspen elm joinery panels hiding storage throughout, flamed Saville stone flooring, a powder room, and two car spaces with a personal EV.

All three bedrooms have large wardrobes and ensuites with bathrooms fittings such as freestanding baths, artisan penny tiles, emerald marble surfaces and brushed-nickel accents.

Additional features of the entertainer’s home include leather-bound joinery doors opening to a full wet bar with Sub-Zero wine fridge and Sub-Zero Wolf barbecue.

The Surry Hills Village precinct will open in stages until autumn next year and once complete, Wunderlich Lane will be home to a collection of 25 restaurants and bars plus wellness and boutique retail. The EVE Hotel Sydney will open later in 2024, offering guests an immersive experience in the precinct’s art, culture, and culinary offerings.

The Surry Hills Village penthouse on Baptist is now finished and ready to move into with marketing through Toga Group and inquiries to 1800 554 556.

Rent growth shows signs of a slowdown as renters and investors reassess

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A Sydney site with a questionable past is reborn as a luxe residential environment ideal for indulging in dining out