The annual rental growth rate has grown at its slowest pace in over a decade, according to the latest data.
For four consecutive months, the country’s current annual rental growth rate has sat at 1.7%, according to data from CoreLogic RP Data, a level not experienced since June 2003.
Rents rose by 0.1% over the month, 0.7% over the quarter & 1.7% over the past year with the combined capital cities rental rates recorded at $487 per week.
Sydney and Hobart recorded the greatest increases in weekly rents while in Perth, Darwin & Canberra rents have dropped by -4.2%, -4.7% and -2.6% respectively.
The report states the slow pace is a likely result of a “ramp-up in investment purchases resulting in an increase in rental stock, an increase in housing supply which has also added to rental stock and a reduction in net overseas migration decreasing demand for rental stock.”
Rental yields for houses and units are sitting at their lowest level since late 2010 with gross rental yields combined across capital cities recorded at 3.6% for houses and 4.5% for units.
House rental yields are lower than the same time last year with house rental yields lowest in Melbourne (3.2%) and Sydney (3.4%) and highest in Darwin (5.7%) and Hobart (5.2%).
At 3.4%, rental yields in Sydney are the lowest they’ve been since May 2005 and at 3.2% Melbourne yields are at their lowest level since November 2010.