Coronavirus: Rent falls in capitals mirror property sale price drop-off

Capital city rental prices have slipped further over the June quarter as demand from foreign students and migrants vanished as a result of border closures.

Capital city rental prices have slipped further over the June quarter as demand from foreign students and migrants vanished as a result of border closures

Property researcher Core­Logic’s quarterly rental review showed rents in Australia’s capitals fell 0.7 per cent in the June quarter — the largest drop since September 2018 — with further falls expected in coming months. The result narrowly trailed the selling market, which fell 0.8 per cent through the same period.

National dwelling rent yields now sit at 3.73 per cent, two basis points off the record low reached in August 2017.

Sydney was down 1.3 per cent to a median of $568 a week. ­Melbourne followed closely with falls of 1 per cent to a $453 a week.

The changes have largely been led by the unit market.

An influx of short-stay rental properties on to the long-term market as a result of fewer travellers and the absence of foreigners looking for permanent accommodation has created greater supply than demand.