The landscape of apartment rentals in Australia is on the cusp of a significant transformation

Rents are tipped to soar in Australia

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Projections are indicating a sharp increase in unit rents across various markets. In a revealing new analysis by CBRE, titled "Apartment Rent and Vacancy Outlook," key Australian regions are identified as hotspots for this impending surge in rental prices.

The analysis forecasts the most pronounced growth in areas such as Sydney’s Eastern Suburbs, Parramatta, Melbourne North, Perth City, and almost every area in Brisbane. These localities are expected to experience substantial rent hikes, particularly for two-bedroom apartments.

A striking detail in CBRE’s report is the projected increase in median rents for two-bedroom apartments in these areas, which are expected to climb by an impressive $120 per week over the next five years, spanning from 2023 to 2028. This forecast paints a picture of a rapidly evolving rental market, where demand continues to outpace supply in key urban precincts.

Delving deeper into the historical context, CBRE’s Pacific Head of Research, Sameer Chopra, highlights a significant shift over the past decade. “At the start of 2013, only four precincts in Australia had an average rent of over $600 per week for two-bedroom apartments. These included the Sydney and Perth CBDs, Sydney’s Eastern Suburbs, and Sydney’s Lower North Shore,” explains Chopra. Fast forward to June 2023, and this figure has expanded to 20 precincts. The projection for 2028 is even more remarkable, with an anticipated 38 precincts – accounting for over 70% of Australia’s two-bedroom apartments – expected to have rents exceeding $600 per week.

This anticipated increase in unit rents is not happening in a vacuum. The report underscores a critical need for new housing, with an estimated 75,000 new apartments required annually to meet the growing demands of the population. This scenario presents a unique opportunity for investors and developers in the Australian property market.

In light of these developments, Luminur Projects emerges as a pivotal player, offering exceptional investment properties characterized by high rental yields. Luminur Projects not only specializes in identifying prime real estate that promises substantial returns but also provides comprehensive support in expanding investors’ property portfolios. For those looking to capitalize on the burgeoning rental market, Luminur Projects offers an avenue to invest in properties that are not only lucrative but also align with the evolving dynamics of Australia’s real estate landscape.

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