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Australia’s rental market has seen its strongest growth since 2009, with the regions continuing to outpace the country’s largest cities, new research has revealed.
National rents soared by an impressive 6.6 per cent in the 12 months to June – the fastest annual growth in dwelling rents since January 2009, new CoreLogic data has revealed.
Taking a deep dive into the 88 SA 4 regions across Australia, the figures revealed that as many as 79 regions saw an increase in rental yields.
However, the increases landlords could charge renters varied from as low as 0.2 per cent or as high as 23.7 per cent.
According to CoreLogic’s head of research Australia, Eliza Owen, city areas were largely negatively impacted by the changing yields.
“Areas which had seen a decline in rent values over the year were largely concentrated across Greater Sydney and Greater Melbourne, with the exception of a slight decline in Outback Northern Territory rent values,” she said.
Regional rents continued to outpace capital city rents, rising by 2.7 per cent in Q2 compared with a 1.9 per cent rise in capital city rents, but both took a tumble quarter-on-quarter.
Unsurprisingly, with a strong regional shift, a regional area topped the list of fastest-growing suburbs in the country, with the South East of Tasmania emerging on top, having clocked growth of 23.7 per cent.
“Applying this growth figure to the median rent suggests an increase of $83 per week in rent over the year,” Ms Owen said.
Following South East Tasmania was Darwin, with landlords seeing a rental increase of 21.8 per cent.
In third place was Greater– which comprises six SA4 regions – five of which are featured in the top 10 list for annual growth in rental values.
Ms Owen said, “Across these five regions, rental markets have tightened significantly in the past year, seeing an average decline of 29.5 per cent in rental listings counted between the June 2020 and June 2021 quarters.”
She also highlighted the similarities between Perth and Darwin.
“It is also worth noting for Perth and Darwin rental markets that strong uplifts in rent values may be exacerbated by a longer-term retreat of investor activity,” Ms Owen said.
“In 2014, a shift in housing demand was created by a decline in mining activity, and subsequent mining employment,” the researcher explains.
Of the just 8 SA4 regions that experienced negative growth, seven are located in Sydney or Melbourne.
Melbourne’s inner suburbs saw a 7.2 per cent decline in rental yields while Sydney Parramatta rental yields fell by 2.1 per cent.
Renters in Melbourne’s Inner East or Sydney’s Inner South West also saw small rent reductions, falling by 1.6 and 0.9 per cent, respectively.
The only remaining suburb outside of Greater Sydney or Melbourne that saw a rental decrease was the Northern Territory outback, which recorded a rent reduction of 0.9 per cent.