Weekly rents across Australia’s capital cities are growing at the slowest pace on record according to figures from CoreLogic RP Data.
According to results of the July Rental Index, the annual growth rate of weekly rents across Australia has fallen to 0.9%, the slowest rate since the data was first collected in 1995.
The index has revealed that during July rents in all Australian capital cities fell, with the average decrease being 0.3%.
and Hobart saw the biggest falls over the month, with decreases of 0.9%, 0.8% and 0.6% respectively.
Over the past 12 months Sydney has seen the greatest rate of rental growth at 2.5%, followed by Hobart at 2.3% and Melbourne at 2.1%.
Darwin and Perth are the only two cities that have seen rents fall over the past 12 months, with decreases of 9.3% and 5.6% respectively.
Combined capital city rental rates now sit at $490 per week for houses and $462 per week for units.
According to the index report, the slow rate of rent growth has likely been caused by three main factors.
“Sluggish rental growth is most likely due to surging investment demand, record high levels of new housing construction and a slowing rate of population growth nationally,” the report states.
“These factors are creating more rental accommodation and suppressing rental increases.”
The slowing pace of rent growth has also affected rental yields, with yields in dropping over the last 12 months in all capital cities but Hobart and Canberra.
Yields in Sydney (3.3%) and Melbourne (3.1%) are the lowest on record.
The average yield for a capital city house sits at 3.4%, another record low.
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