Rents are on the way down in three capital cities, according to CoreLogic RP Data’s rental report
HOUSE prices may still be on the way up, but rents are on the way down in three capital cities. Where has it become cheaper to rent?
HOUSE prices may be continuing to grow, but average rents have dropped in three capital cities in the past year.
New figures released by CoreLogic RP Data reveal that in the year to the end of April, the average rental price dropped in Darwin, Perth and Canberra.
Rents dropped 4.7 per cent in Darwin, 4.2 per cent in Perth and 2.6 per cent in Canberra.
Sydney still had the highest average weekly rent of $592, which was up by 3.3 per cent on last year.
Hobart also experienced a significant increase in rents of 3.2 per cent to $342 a week.
CoreLogic RP Data research analyst Cameron Kusher said rents were growing at their slowest rate in more than a decade and he predicts the trend may continue.
“The slow pace of rental appreciation can likely be attributed to the booming level of dwelling construction coupled with high levels of buying activity from the investment segment which is adding additional rental stock to the market and curtailing rental increases,’’ he said.
Mr Kusher said rental growth was sluggish across all capital cities at the moment.
“With residential construction activity continuing to increase, particularly for inner city units, we would expect that the additional housing supply may result in an even lower rate of rental growth over the coming months,’’ he said.
Mr Kusher said Melbourne and Brisbane and to a lesser extent Sydney, where there is a lot of new unit supply, would most likely feel the brunt of it.
WEEKLY AVERAGE RENTS
Hobart $342
Adelaide $369
Brisbane $435
Melbourne $446
Perth $479
Canberra $497
Darwin $572
Sydney $594
Source: CoreLogic RP Data