Rents surge in Hobart as yields slump in Sydney

Rents surge in Hobart as yields slump in Sydney

Australia’s eight capital city rental markets have posted very different results over the March quarter.

Domain has reported that while Sydney tenants paid the highest rents, Hobart tenants experienced the fastest growth in rents over the year (see tables below).

In terms of gross yields, Sydney landlords had the worst return over the past year, while Darwin landlords had the best (see tables below).

Here are some of the highlights for each of the capital cities:

Sydney

  • Rents were identical for houses and units ($550)
  • Sydney had the lowest yields of any capital city (3.11 per cent for houses, 3.85 per cent for units)

Melbourne

  • Unit rents jumped by 2.5 per cent over the quarter
  • Melbourne suffered the biggest annual decline in yields of any capital city (5.9 per cent for houses, 1.5 per cent for units)

Brisbane

  • Rents declined over the year for both houses (1.2 per cent) and units (1.3 per cent)
  • Brisbane ranked third for house yields (4.61 per cent) among the capital cities

Perth

  • Perth had the lowest house rents ($355) and unit rents ($300) among the capital cities
  • Yields rose over the quarter for both houses (1.2 per cent) and units (2.0 per cent)

Adelaide

  • Adelaide posted quarterly and annual rental increases for both houses (1.4 and 4.2 per cent) and units (1.7 and 1.7 per cent)
  • Yields fell over the year for both houses (1.3 per cent) and units (0.4 per cent)

Hobart

  • Rents skyrocketed over the year for both houses (15.1 per cent) and units (14.8 per cent)
  • Yields rose over the quarter for both houses (1.5 per cent) and units (4.8 per cent)

Canberra

  • Rents surged over the year for both houses (6.0 per cent) and units (5.9 per cent)
  • Canberra ranked second for unit yields (5.84 per cent) among the capital cities

Darwin

  • Darwin had the second-highest house rents ($530) among the capital cities
  • Darwin ranked first for unit yields (5.89 per cent) among the capital cities

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Median weekly asking rents – houses

City Rent Quarterly change Annual change
Sydney $550 0.0% 0.0%
Melbourne $430 1.2% 2.4%
Brisbane $400 0.0% -1.2%
Perth $355 1.4% -4.1%
Adelaide $375 1.4% 4.2%
Hobart $420 6.3% 15.1%
Canberra $530 -1.9% 6.0%
Darwin $530 -3.6% -3.6%

Median weekly asking rents – units

City Rent Quarterly change Annual change
Sydney $550 0.9% 3.8%
Melbourne $410 2.5% 3.8%
Brisbane $375 1.4% -1.3%
Perth $300 0.0% 0.0%
Adelaide $300 1.7% 1.7%
Hobart $350 2.9% 14.8%
Canberra $450 4.7% 5.9%
Darwin $410 -1.2% -2.4%

Gross yields – houses

City Yield Quarterly change Annual change
Sydney 3.11% 0.8% -3.0%
Melbourne 3.14% 0.5% -5.9%
Brisbane 4.61% 0.6% -1.9%
Perth 4.17% 1.2% -0.5%
Adelaide 4.50% 0.1% -1.3%
Hobart 5.15% 1.5% -3.8%
Canberra 4.28% -0.1% -3.9%
Darwin 5.06% 1.4% -0.2%

Gross yields – houses

City Yield Quarterly change Annual change
Sydney 3.85% 1.3% -1.4%
Melbourne 4.47% 3.2% -1.5%
Brisbane 5.06% 2.8% 1.3%
Perth 4.52% 2.0% 1.5%
Adelaide 5.16% 1.1% -0.4%
Hobart 5.52% 4.8% 0.0%
Canberra 5.84% 3.2% 4.4%
Darwin 5.89% 3.0% 6.7%

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