Rental growth has hit an all time low, with rents going backward in some capital cities
RENTAL growth has hit an all time low, with new figures revelling it has suddenly become cheaper to rent in some of our major capital cities.
RENTAL growth has slowed to record lows, with it now cheaper to rent in many capital cities then it was at this time last year.
As the rental market approaches one of its busiest times of the year, the latest CoreLogic RP Data rental review found weekly rents across combined capital cities rose by just 0.3 per cent in the year to the end of November.
Melbourne and Sydney were the only markets to record any significant rental growth, of 2.1 per cent and 2 per cent during the year. WHAT BUYERS WILL PAY MORE FOR
PROPERTY MARKET LIKENED TO FRAUD SCHEME
It is now cheaper to rent in Brisbane, Perth and Darwin.
In Darwin rents went backwards by 13.5 per cent and in Perth by 7.4 per cent. Rents were now cheaper in Brisbane by 0.3 per cent.
Adelaide and Hobart had marginal rent increases of 0.2 per cent and 0.3 per cent.
CoreLogic RP Data research analyst Cameron Kusher predicts rent rates will continue to slow down.
He said part of the reason behind the rent slow down was there were more properties on the market available for rent and migration rates had slowed leading to less demand for rental properties.
Long-term low interest rates have bought more investors into the market and as a result there are more properties that need tenants.
“It is clear that the increase in investment stock continues to provide landlords with little scope to lift rental rates while the low mortgage rate environment provides little incentive to push yields higher,’’ he said.
According to realestate.com.au there are more than 7500 properties listed for rent in the greater Brisbane area including a studio unit at Kellett St, Auchenflower for $200 a week to $3350 a week for a four-bedroom unit at 35 Harbour Rd, Hamilton.
In Melbourne there are about 2900 properties listed for rent on realestate.com.au. These range from $205 a eek for a studio apartment at Lygon St, Carlton to a $2600 a week for a three-bedroom unit at St Kilda Rd, Melbourne.
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