Rental returns drop in August

By |
The latest figures from CoreLogic showed that rental rates in capital cities dropped by -0.3% during the months of July and August. Rental rates have fallen by -0.5% over the past year and are now -1.4% lower than its May 2015 peak.

Median prices for weekly rents dropped to $484 per week for houses and $466 per week for apartment units – the lowest since November 2014.

Areas with dropping rates included Brisbane (-1.1%), Adelaide (-0.3%), Perth (-9.4%), and Darwin (-14.1%). 

On the other hand, Melbourne, Canberra, and Hobart recorded increasing rental rates, while Sydney remained stagnant.

CoreLogic research analyst Cameron Kusher explained that this trend is expected to continue given today’s property market conditions.

“As long as wages growth continues to stagnate, coupled with historically high levels of new dwelling construction and slowing population growth, landlords won’t have much scope to increase rents,” said Kusher.

“On the flipside, renters are now in a much better position to negotiate.”

Kusher explained that the surge in the number of new buildings might lead to renters to become fussy over some unit conditions, including location and amenities.

“It may be more difficult for owners of older units with fewer amenities to compete with better located and facilitated new unit stock, particularly if there is little pricing differential,” said Kusher.
 

Can you afford to buy in this suburb? Find out how much you can borrow

Top Suburbs : nightcliff , lockridge , alderley , willliamstown , collingwood

go back

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here