If you follow real estate data, you’re aware that Australia is one of the countries that has experienced significant asset inflation in the real estate market. Real house prices have been through the roof since the early 1990s, and indeed to such an extent that many analysts have called it a huge financial bubble, albeit one that has been very reluctant to pop.
We recently added rental data on an extremely granular level for the Queensland housing market.
The chart below shows median weekly rents for Brisbane, the Gold Coast, and the Sunshine coast for both 2 bedroom flats and 2 bedroom townhouses. As one can see, rents have also been increasing over the last decade, probably to a lesser extent than house prices, thus casting some doubt on the financial bubble hypothesis.