A new report has revealed the state of the national rental market, with one capital city simultaneously recording the lowest rental yields and record-high rental prices.
The June Domain Rental Market Report has found that rents remain at ‘peak levels’ in most Australian cities, with Sydney recording a record-high median house rental of $530 a week.
That figure represents an increase of 1.9 per cent for the June quarter, and a 3.9 per cent increase year on year for house rents. Unit rents remained steady over the quarter at $500 per week.
Despite the record-breaking figure, Sydney was found to be the lowest-yielding capital city market – an indication of the heated buyer’s market in that city, something acknowledged by Domain senior economist Dr Andrew Wilson.
“There has been a steady increase in rental rates across most capital cities; the exceptions being Perth and Darwin, where property supply is outstripping demand. Sydney tenants are hardest hit with rents increasing to record highs, reflective of the highly competitive property market,” Dr Wilson said.
Melbourne house rents remained at record levels over the June quarter with a median weekly asking rent of $390 – an increase of 2.6 per cent over the year. Unit prices increased by 1.4 per cent over the quarter to reach the record high of $370 per week recorded at the same time last year.
Brisbane’s median rents remained steady over the quarter, at $400 per week for houses and $370 per week for units.
It’s a similar story for Adelaide and Canberra, where the median rent for houses and units remained steady over the quarter.
As indicated by Dr Wilson, rents in Perth and Darwin fell over the quarter.
In Perth, the median weekly rental price for houses fell 4.4 per cent to $430, and unit rents were down by 2.6 per cent to $375 per week.
In Darwin, the median house rent was down to $600 per week, representing a 7.7 per cent reduction.
Hobart, the highest-yielding capital city, returned a mixed result for the quarter. House rents remained steady at $330 per week, while unit rents suffered a 3.6 per cent dip to $270.