Rental returns on capital cities revealed

By Cameron Micallef 06 March 2020 | 1 minute read

Long-term buy and rent property investors are going through a turning point in values, with rental growth on an upswing, according to the latest figures.

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Results released in CoreLogic’s Pain and Gain Report show national rents were 0.5 of a percentage point higher over the month of January 2020, with a median rental value of $440 a week.

This is the highest increase in rental income since January 2018, signalling the lowering of new stock available is favouring investors.

The CoreLogic hedonic rental index has seen an upswing in values since September 2019, which follows the start of the upswing in purchase prices in June the same year, and decline of new dwelling construction in most capital cities.

The report found Sydney remains Australia’s most expensive city to live in, with the median dwelling rental value in January 2020 being $574 per week.

However, this is lower than a year ago when the median cost to renters was $582 per week.

Median rents in Canberra came in second, falling just $18 per week below Sydney, with Hobart coming in third place with median rental returns of $470 per week.

Australia’s second largest city, Melbourne, showed rental returns of $458 per week, while Brisbane will return investors $440 per week.

Australia’s cheapest city to rent in is PerthPerth, TAS Perth, WA, with a median cost of $390 per week, with Adelaide being $3 more a week.

RELATED TERMS

Capital

Capital refers to the financial resources that are available to be used for income generation.

Returns

A return refers to the change in the price of an asset or investment, usually represented in price change or percentage change.

About the author

Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your... Read more



Rental returns on capital cities revealed
Rental returns on capital cities revealed
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