New research has shown that only two Australian capital cities have seen rental growth of 2% or more over the last year.
According to CoreLogic RP Data’s latest monthly rental review, Melbourne recorded rental growth of 2.1% over the 12 months to the end of November, while rents grew by 2% in Sydney.
Three other capital cities, Canberra, Hobart and Adelaide
saw their rents increase by 0.2% - 1.1% over the same period.
The three remaining cities, Perth
and Brisbane all saw negative growth over the year, with Perth and Darwin seeing significant rental falls of 7.4% and 13.4% respectively.
Combined, rents across the capital cities grew by just 0.3% over the 12-month period, which is a new record low.
According to the figures, the median weekly asking rent across the capital cities is $483.
Individually, Sydney’s weekly median asking rent of $595 is the highest, while Hobart’s has the lowest at $336.
The slow pace of growth has also had an impact on rental yields, with seven of the eight capital markets recording falls over the 12 months.
Yields are the lowest in Sydney (3.4%) and Melbourne (3.1%) and the two cities have the equal highest yearly decreases of 0.3%.
Hobart is the only market where yields have not deteriorated over the year, remaining steady at 5.4%, a nation-wide high it and Darwin share.
Cameron Kusher, research analyst at CoreLogic RP Data, said there is little sign that the rate of rental growth will pick up anytime soon.
“[The] results point to a broad trend of weakening rental growth, particularly throughout this year. With less than one month to go before year's end, it is apparent that rental growth will be very soft over 2015,” Kusher said.
“The construction boom across the capital cities, coupled with slowing population growth, low mortgage rates and the recent heightened level of activity from investors who add to the pool of rental stock are the major contributing factors to the slowing rental growth,” he said.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
tweed heads south
st kilda west
Get help with your investment property
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 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 an appointment is free.
We value your privacy and treat all your information seriously - you can check out