Quarterly house price to rent ratio Australia 2018-2021
In the fourth quarter of 2021, the house price-to-rent ratio in Australia was estimated at 141.6. An indicator of how strong the property market is, the house price-to-rent ratio was calculated by dividing nominal house prices by rent price indices. After reaching a peak in 2017, the price-to-rent ratio had decreased each quarter until the third quarter of 2019. From then, the house price-to-rent ratio has continued to increase reaching a high in 2021.
Is Australia in a property bubble?
Many industry experts believe the country is in a property bubble – indicated by the rapid increase in Australian property market prices to the point that they are no longer relative to incomes and rents, followed by a decline. The house price-to-income ratio has also followed a similar trend, falling to 96.6 percent in the third quarter of 2020, before recovering towards the end of the year.
Housing demand
The rental vacancy rate, which indicates how many properties are available for rent out of all the rental stock, was relatively high in Melbourne and Sydney. Theaverage weekly rent prices varied across the country depending on the city.
Is Australia in a property bubble?
Many industry experts believe the country is in a property bubble – indicated by the rapid increase in Australian property market prices to the point that they are no longer relative to incomes and rents, followed by a decline. The house price-to-income ratio has also followed a similar trend, falling to 96.6 percent in the third quarter of 2020, before recovering towards the end of the year.
Housing demand
The rental vacancy rate, which indicates how many properties are available for rent out of all the rental stock, was relatively high in Melbourne and Sydney. Theaverage weekly rent prices varied across the country depending on the city.
