According to analysis from CoreLogic RP Data, rental rates across the combined capital cities fell by -0.3% in July 2015 and the annual rate of growth continues to slow, reaching a new record low of 0.9%.
Across the combined capital cities, dwelling rental rates are recorded at $486 per week and they have fallen by -0.3% over the month, are up by 0.3% over the first seven months of the year and have increased by just 0.9% over the past 12 months. The 0.9% annual rise in capital city rents is the slowest rate of growth on record, with data going back to December 1995. The sluggish pace of rental appreciation continues to be attributed to the ongoing boom in dwelling construction across Australia’s capital cities accompanied by record high participation in the housing market from investors. A high proportion of the inner city unit development in particular is being targeted by domestic investors and foreign purchasers.
Looking across the individual capital cities, over the past year, Sydney and Hobart have recorded the greatest increases in weekly rents. Over the past month, weekly rents have moved lower across every capital city and over the past three months rents are lower in all cities except for Melbourne.
Weekly rents rising at the slowest pace on record
- After weekly rents fell a further 0.3% over the month of July, the annual pace of rental growth across the combined capital cities has fallen to a new record low of just 0.9% per annum
- Despite recording the strongest growth, Sydney rents rose just 2.5% per annum
- Rents are falling in Darwin and Perth, down by 9.3% and 5.6% over the past twelve months
- Combined capital city rental rates are recorded at $490 per week for houses and $462 per week for units.
- With home values growing faster than rents, gross rental yields are at a record low level and continue to edge lower
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