Residential Real Estate Leases - Australia

The projected revenue of the Residential Real Estate Leases market market in Australia is expected to reach US$77.12bn in 2024.
The market segment dominated by House Leases is projected to have a market volume of US$60.64bn in the same year.
Furthermore, the revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 5.46%, leading to a market volume of US$100.60bn by 2029.
The demand for residential real estate leases in Australia is booming due to strong population growth and high migration rates.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Australia has been experiencing significant growth in recent years.

Customer preferences: One of the main reasons for this growth is the increasing demand for rental properties in Australia. Many individuals and families are opting to rent rather than buy a home due to various factors such as financial flexibility, lifestyle choices, and the desire to avoid the responsibilities of homeownership. Additionally, the rising cost of housing in Australia has made renting a more affordable option for many people.

Trends in the market: Another trend in the residential real estate leases market in Australia is the increasing popularity of long-term leases. Many tenants are now seeking stability and security by signing longer lease agreements, which can range from 12 months to several years. This trend is driven by the desire to avoid frequent moves and the associated costs, as well as the need for stability in an uncertain economic climate.

Local special circumstances: Australia's growing population, particularly in major cities such as Sydney and Melbourne, has also contributed to the development of the residential real estate leases market. As more people move to these cities for employment and lifestyle opportunities, the demand for rental properties has increased significantly. This has led to a competitive rental market, with landlords often receiving multiple applications for their properties.

Underlying macroeconomic factors: Several macroeconomic factors have also influenced the growth of the residential real estate leases market in Australia. The low interest rate environment has made it more difficult for individuals to enter the property market, leading to an increase in demand for rental properties. Additionally, the impact of the COVID-19 pandemic has caused economic uncertainty and job insecurity, prompting many individuals to delay purchasing a home and opt for renting instead. In conclusion, the residential real estate leases market in Australia has experienced significant growth due to customer preferences for rental properties, the increasing popularity of long-term leases, the growing population in major cities, and underlying macroeconomic factors such as low interest rates and the impact of the COVID-19 pandemic.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate Leases - Australia

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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