Photo credit: 8LettersUK
Rents in Australia are rising at the slowest pace on record, according to new figures from CoreLogic RP Data.
Combined capital city rental rates increased by 0.1 per cent in May to $488 per week. Rents rose by 0.1 per cent over the month, 0.6 per cent over the quarter & 1.5 per cent over the year.
Sydney and Hobart have seen the strongest rental growth over the past 12 months, which indicates a disconnect between demand and supply, says report author Cameron Kusher, who hailed the slowdown as “good news for those looking to rent”.
“Sydney stands out as seeing strong population growth which is creating more demand for accommodation in the city,” he comments, but rising prices and the slowdown in rents have left yields low.
Mr. Kusher notes, though, that investors in the two cities are “clearly not targeting” rental returns, as they can benefit enough from capital growth.
For a more balanced approach to property investment, Kusher suggetss markets such as Brisbane or Adelaide, although capital growth is much slower.
Rents in Perth, Darwin & Canberra dropped by 4.5 per cent, 5.5 per cent and 0.6 per cent respectively.