Rents are rising across Australia, according to CoreLogic, with the majority of capital cities as well as regional markets recording year on year increases in rental rates, though rental yields are flat.
According to the CoreLogic Quarterly Rental Report, weekly rents increased by 0.1% in December 2017 to be 0.3% higher over the final quarter of 2017 and 2.7% higher over the 2017 calendar year.
While this 0.3% quarterly rent rise is understood to be greater than the 0.1% over the previous quarter, it’s also understood to be the weakest fourth quarter for rental growth since 2014.
Rents in Australia’s combined capital cities remained unchanged in the quarter to December 2017 – a moderate slowdown from the 0.1% growth recorded in Q3, as well as from the 0.3% growth recorded in Q4 2016.
Regional market rents were found to be 1.2% higher over the quarter and 3.0% higher over the past 12 months.
Capital city rental growth over the quarter to December 2017
Higher over the quarter
- Melbourne: +0.3%
- Adelaide: +0.9%
- Hobart: +2.1%
- Canberra: +1.6%
Lower over the quarter
- Sydney: -0.3%
- Brisbane: -0.1%
- Perth: -0.7%
- Darwin: -0.5%
All capital cities, excluding Canberra, achieved a stronger annual change in rents over the past year compared to the same period in 2016. Simultaneously, regional markets also earned an annual rental increase.
According to the report, median weekly rents nationally are recorded at $420 for houses and $425 for units. Combined capital city house rents were $457/week and unit rents $449/week. Combined regional markets rents were $351/week for houses and $349/week for units.