As property prices have soared to record highs in recent years, the government has been pushing to curb the rising cost of renting.
But real estate industry insiders say the real estate market is not on track to cool off, even if some people do not want to admit it.
“We’re still seeing a bubble,” said a real estate agency chief executive.
“It’s a bubble that’s only going to burst and we’re still in it.”
The number of Australians who live in apartments has been growing faster than any other sector of the economy.
But a study released last month by the Australian Bureau of Statistics (ABS) found the median rent for a two-bedroom apartment is now $2,500 a month.
That’s up by almost two per cent on last year, when the median was $2.95 million.
That is more than triple the $1.75 million median for a one-bedroom.
In Melbourne, the median price of a two bedroom was $3.2 million in October, up by more than 10 per cent compared to October last year.
In Sydney, the price of the median one-bed in October was $1,923, up 7.6 per cent.
And in Brisbane, the average price of one- and two-bed apartments is now up by over 4.3 per cent in the past year, the ABS data shows.
However, it’s the cost of living that is pushing the prices of many people out of their homes.
The average rent for an apartment in Sydney rose by about 6 per cent last year to $2 ,400 a month, up from $2 a year earlier.
In the last year rents in Melbourne have increased by a whopping 32 per cent to $3,000 a month for a property, compared to $1 ,000 in the same period last year .
In Sydney it’s even more pronounced, with rents rising by more in Melbourne to $6,200 a month on average, up 8.3 percent.
But a new report by the Australia Council of Real Estate Agencies (ACREA) shows that the average rent in Australia’s most populous state of New South Wales is currently just $1 a month higher than in 2012.
And it is only increasing, despite an increase in housing supply.
A spokeswoman for ACREA said rents in the country’s largest state have gone up faster than inflation since the end of 2016.
“Australia’s housing market is experiencing unprecedented supply,” the spokeswoman said.
“This is a reflection of the strong national housing market, the continued robust demand from international investors, and strong national government policies that have helped support housing affordability.”
But while rental prices are rising faster than wages, wages are not rising at the same rate as rent.
In September the average Australian wage rose by 0.4 per cent, to $26.80 an hour, according to the Bureau of Economic Analysis (BEA).
In December, wages were flat at $26,700.