Low rental growth continues despite lift over last quarter

by Maya Breen10 Apr 2015
The latest quarterly rental review from CoreLogic RP data points out that ‘buoyant property market conditions do not always mean that all sectors of the property market are performing well’.
“With new housing supply increasing and investor purchasing at record highs we have seen a significant slowdown in the rate of rental growth over the past couple of years and we expect this trend to continue over the coming year," RP Data research analyst and report author Cameron Kusher said.
The results show a 1.3% increase in national house and unit rental rates over the first quarter of 2015 while advertised weekly house and unit rents have risen 1.2 % at a combined capital city level with house rents recorded at $435 and unit rents at $415 per week.
“Given the softer conditions recorded across the capital city rental market towards the end of 2014, rental growth over the first quarter of 2015 has been relatively strong at a capital city level,” Kusher said.
Across the individual capital cities for the quarter, house rents rose in Melbourne (1.3%), Canberra (1.1%) and Sydney (1.0%) while Darwin (-1.6%) was the only capital city detached housing market to record a fall in rents over the March quarter.
The remaining four cities saw rents remain stable over the three month period.
Nationally compared to March 2014, house rents were up 2.6 % while unit rents were 1.3 per cent higher over the year.