Australian hotspots where rents are falling, plus more headlines

For PropertyGuru’s real estate news roundup, rental conditions are easing and prices are flatlining in most Australian cities, which is positive news for renters following several years of strong growth. In other headlines, the Johor Bahru–Singapore Rapid Transit System (RTS) Link is poised to reshape Johor Bahru’s property market, driving demand, boosting property values, and spurring broader economic growth. Lastly, the Thailand condo market faces challenges from weakened purchasing power and stricter lending conditions.

Turning point: The Aussie hotspots where rents are easing and even falling

Rental conditions are easing and prices are flatlining in most cities, which is positive news for renters following several years of strong growth. PropTrack reports that in some regions, weekly advertised rents are declining, offering further relief for renters in those areas. According to PropTrack’s latest Market Insights Report, national rent prices rose by 1.6 percent from September to December 2024. Rents remained unchanged in all capitals except Brisbane and Canberra over the quarter. In Sydney and Melbourne, the largest rental markets, weekly rents have been stable at AUD730 and AUD570 for the past six months. Rent prices rose by 6.9 percent annually, which was well below the annual growth rates of 11.5 percent in 2023 and 15.6 percent in 2022.

Transforming Johor Bahru: The RTS Link’s impact on the different property sectors

The Johor Bahru–Singapore Rapid Transit System (RTS) Link, a highly anticipated infrastructure project, is set to transform cross-border connectivity between Malaysia and Singapore. More than just a solution to daily commuting woes, the RTS Link is poised to reshape Johor Bahru’s property market, driving demand, boosting property values, and spurring broader economic growth. Spanning 4 kilometres, the RTS Link connects Bukit Chagar in Johor Bahru to Woodlands North in Singapore. Once operational, the system will reduce travel time between the two regions to just 5 minutes. According to PropertyGuru Malaysia, this unparalleled convenience is expected to attract a wave of interest in Johor Bahru’s residential properties, especially from Malaysians working in Singapore and Singaporeans exploring more affordable housing options.

Thailand’s condo market subdued in Q4 2024

Developers should focus on strategies to reduce risks and drain unsold units priced at THB1-3 million in the condo market, which faces challenges from weakened purchasing power and stricter lending conditions, threatening market stability. Nattha Kahapana, managing director at property consultant Knight Frank Thailand, said the condo market is under pressure due to both declining purchasing power and stricter lending criteria from financial institutions. “Although interest rates have decreased by 0.25 percent, they remain relatively unchanged overall, and the market is expected to continue its slowdown,” he said in Bangkok Post. The condo market in the fourth quarter of 2024 remains subdued, in line with the Bank of Thailand’s (BoT) survey that projected a decline in housing loan demand in the next three months.

The Property Report editors wrote this article. For more information, email: [email protected].