Rental Performance On the Move
Over the past year, capital city rents have increased by just 0.5% and the trend is pointing towards further slowing in rental growth over the coming months.
CoreData RP Data says over the past 12 months, the rental growth performance has been mixed across the capital cities however, the common trend is that the rate of rental change is slowing.
Over the year rents have increased in Sydney (1.9%), Melbourne (2.1%), Brisbane (0.5%), Adelaide (0.1%) and Canberra (1.0%).
Rental rates have fallen over the past year in Perth (-5.8%) and Darwin (-11.4%).
More recently the rate of rental growth has slowed with rental rates falling in each city over the past quarter. While the broad figures certainly tell a broad story, as always there are certain suburbs recording much stronger rental growth as well as those seeing much greater falls.
Across the capital cities, Collaroy in Sydney has seen the greatest increase in house rents over the year, up 31.6%. Although there is some variation across cities, it is generally the areas of the city with higher priced housing stock that have seen the greatest rental rises over the past year. Melbourne’s results show Mornington Peninsula suburbs as being prominent on the list while at the same time this area of Melbourne has been one of the weakest performing regions for value growth over recent years.