In bad news for investors new CoreLogic RP Data research reveals rental growth has ground to a halt
PROPERTY prices may be rising, but rental growth has ground to halt. See which states were the winners and losers.
PROPERTY prices may be rising but rents have ground to a halt with new research revealing rental growth is at its lowest level in more than a decade.
The latest CoreLogic RP Data quarterly rental review found that combined capital city advertised
rents had only increased by 1.8 per cent in the past 12 months.
In the last quarter of 2014 rents were unchanged at $430 a week for a house and $410 a week for units.
PROPERTY INVESTMENT WORTH BILLIONS
GENEROUS LANDLORDS HELP THE NEEDY
Hobart house rents experienced the strongest growth of 5.4 per cent in the last quarter of 2014, followed by Brisbane at 2.5 per cent.
Perth and Darwin were the weakest house rental markets with their rents down by 2.2 per cent and 0.8 during the quarter.
The unit market’s performance was “somewhat weaker’’ than the housing market across the board with Hobart and Brisbane the only capital cities to experience an increase in rents during the quarter of 1.8 per cent and 1.3 per cent respectively.
Unit rents fell during the period in all other capital cities.
Despite its rents dropping, Darwin still had the highest median rent for houses and units at $645 a week and $550 a week.
Even though it had the biggest increase in rents during the quarter Hobart had the cheapest median rent for houses and units at $343 a week and $280 a week.
CoreLogic RP Data research analyst Cameron Kusher said the figures revealed the most subdued rental market since the mid 2000s.
“While rental growth remains low, rents still increased over the year in most cities with Perth, Darwin and Canberra the exceptions,’’ he said.
Mr Kusher predicts rental growth will remain fairly soft throughout 2015 particularly as there is a high number of new dwellings approved and ready for construction.