The number of rental properties sold in regional Australia has fallen sharply, while the number of rural housing loans has also plummeted.
In the three months to June 30, the national average for all rental properties was 1,819,903, with regional areas averaging 1,091,094.
Rental properties sold through Australia’s biggest regional banks were the lowest for more than three years, according to data compiled by the ABS from the Australian Bureau of Statistics.
The median sale price in regional areas was $1.6 million in June, down 0.7 per cent from the same period a year ago.
“Rental property sales in regional and remote areas have been in a long-term decline, and in some parts of Australia, they are at a standstill,” the report says.
While the average price for a one-bedroom flat in regional Queensland fell by 3.6 per cent to $1,836,000, in regional Victoria, the average was 4.3 per cent lower to $2,566,000.
Australia’s national average of 1,907,500 one-bedrooms was also down 0,8 per cent year-on-year, while Sydney’s median one-room price was down by 4.1 per cent.
Queensland’s median price fell by 8.1 to $5,914,000 in the month, while Victoria’s fell by 4 per cent in the same time period.
Despite the drop in rental properties, the number available for sale was up 1.2 per cent, while it was up 4.6 percent nationally.
Data compiled by The Australian Financial Report shows the median sale prices of residential property in Australia have dropped by 9.4 per cent over the past three months, the report said.
On average, one- and two-bedroom properties sold for an average of $7,913,000 and $7.621,000 respectively in June.
It is unclear why the numbers are falling.
At the end of last year, the Australian Property Association predicted that the median price of a two-bed home would be $2.7 million, which would translate to a rental income of $16,400.
But according to the latest figures, the median one bedroom is still $1 million.
Banks are also reporting a “resurgence” of interest in the rental market, with the average loan being $2 million, according a survey by the Australian Real Estate Institute.
And the report finds that about one in five people in regional Australian households is now in a “low-income household”.
“While this is a worrying trend, it does not reflect the reality of rural Australia,” the analysis said.
“It is also concerning given the impact on affordability, particularly for those living in regional communities.”
Topics:housing,housing-industry,government-and-politics,housing,australiaFirst posted July 03, 2019 12:47:26Contact Adam Sillars