Rental figures remain flat

Rental figures remain flat

Posted on Friday, January 09 2015 at 2:16 PM

The CoreLogic RP Data Rental Review, released this week, has confirmed that while dwelling values continue to increase, rental growth is sitting at its lowest annual rate in more than a decade, with combined capital city rents increasing by just 1.8 per cent over the past 12 months.

to the key quarterly findings, capital city advertised rents remained unchanged
over the final quarter of 2014, with house rents steady at $430 per week and
unit rents recorded at $410 per week. Across Australia, house rents increased
by 1.3 per cent to $400 per week, while unit rents were unchanged over the
three months to December at $390 per week.

saw the most impressive change for houses, with Hobart rents rising by the most
– 5.4 per cent over the three-month period. Brisbane, meanwhile, had a 2.5 per
cent rise in house rents, Sydney had just one per cent and Melbourne saw no
change whatsoever.

in units was somewhat weaker, with all capitals except Hobart and Brisbane
recording a fall or staying the same.

review also revealed that annual advertised rents are now 2.6 per cent higher
than they were in December 2013 for both houses and units, while across the
combined capital cities house rents have risen by 1.2 per cent, compared to a
stronger level of growth for unit rents, which rose by 2.5 per cent.

CoreLogic RP Data research
analyst Cameron Kusher says that rental rates across the combined capital
cities have remained flat in 2014, which is the most subdued the rental market
has been since the mid-2000s.

“While rental growth remains
slow, rents still increased over the year in most cities, with Perth, Darwin
and Canberra the exceptions,” he says.

“Given the recent high
number of dwelling approvals and commencements coupled with the high level of
purchase activity from investors, we would anticipate that the rate of rental
growth will remain soft throughout 2015.

“Rental market activity will
be largely dependent on what takes place outside of the housing market as
broader economic conditions remain mixed,” he says.

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