news

Rental results a mixed bag

2

The rental markets of each state are moving at different speeds, with five cities recording a rise in house rents and two a loss over the past quarter, according to RP Data.

Brisbane was the only city where the house rent remained unchanged in the three months to September, sitting on a median rent of $400 per week.

Melbourne recorded the greatest change, with rents shooting up by 2.6 per cent for a median of $525 per week.

Other gains were recorded in Darwin and Hobart (1.5 per cent), Adelaide (1.4 per cent) and Sydney (one per cent).

Darwin remains the country’s most expensive rental market, with a median house rent of $660 per week.

Perth and Canberra suffered a drop in median rents.

Perth fell by 2.7 per cent to a median of $462 per week while Canberra dropped by two per cent.

Unit rents flatlined in most cities over the quarter in six cities.

Canberra experienced a 3.2 per cent drop while Hobart saw a more moderate fall of 1.8 per cent.

RP Data research director Tim Lawless said the one consistent trend was capital gains outpacing rental returns.

“The performance of rental markets are diverse, however the common theme is that generally the rate of capital gain is outpacing the change in weekly rents which is driving rental yields lower,” he said.

“This is happening at a time when investment demand is at record levels and trending higher, which highlights that most investors are focusing on capital gains and ignoring the low yield scenario.

“The softer rental conditions are likely the result of the surge in investor-related activity which is seeing more rental supply hit the market.”

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
PAMBULA 42%
2.
MILSONS POINT 41.26%
3.
SPEERS POINT 39.69%
4.
SPRINGWOOD 37.72%
5.
ILUKA 36.3%