Tenants laughing in some markets, crying in others

Tenants laughing in some markets, crying in others

Rental rates have significantly increased in Hobart and Canberra, while going sharply backwards in Perth and Darwin.

Domain has reported that Hobart’s median house rent rose 2.9 per cent between the June quarters in 2016 and 2017, while its median unit rent jumped 14.3 per cent (see table below).

Canberra landlords also had a happy year, with the median house rent climbing 6.4 per cent and the median unit rent climbing 5.0 per cent.

However, Perth has been moving in favour of tenants, with house rents down 7.7 per cent and unit rents down 10.4 per cent.

Darwin also experienced declines in both sectors – house rents by 5.5 per cent and unit rents by 9.1 per cent.

House weekly rental rates

City Median rent Quarterly change Annual change
Sydney $550 0.0% 3.8%
Melbourne $420 0.0% 5.0%
Brisbane $400 -1.2% 0.0%
Perth $360 -2.7% -7.7%
Adelaide $360 0.0% 2.9%
Hobart $360 -1.4% 2.9%
Canberra $500 0.0% 6.4%
Darwin $520 -5.5% -5.5%

Unit weekly rental rates

City Median rent Quarterly change Annual change
Sydney $550 3.8% 4.8%
Melbourne $400 1.3% 5.3%
Brisbane $370 -2.6% -1.3%
Perth $300 0.0% -10.4%
Adelaide $290 -1.7% 1.8%
Hobart $320 4.1% 14.3%
Canberra $420 -2.3% 5.0%
Darwin $400 -4.8% -9.1%

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More good news for Hobart landlords

In terms of gross rental yields, Hobart leads the pack, while Sydney is the worst-performing capital city (see table below).

Hobart’s median house yield in the June quarter was 5.38 per cent, while its median unit yield was 5.55 per cent.

Sydney, though, recorded a house yield of 3.23 per cent and a unit yield of 3.94 per cent.

Darwin was the only capital to experience an increase in house yields, while Darwin, Melbourne, Adelaide and Canberra experienced an increase in unit yields.

House gross rental yields

City June quarter Previous quarter Previous year
Sydney 3.23% 3.23% 3.43%
Melbourne 3.48% 3.38% 3.65%
Brisbane 4.50% 4.70% 4.85%
Perth 4.14% 4.20% 4.24%
Adelaide 4.57% 4.58% 4.66%
Hobart 5.38% 5.35% 5.51%
Canberra 4.47% 4.50% 4.52%
Darwin 4.97% 5.11% 4.77%

Unit gross rental yields

City June quarter Previous quarter Previous year
Sydney 3.94% 3.93% 4.04%
Melbourne 4.52% 4.57% 4.45%
Brisbane 4.86% 5.03% 4.92%
Perth 4.38% 4.48% 4.64%
Adelaide 5.12% 5.20% 5.09%
Hobart 5.55% 5.51% 5.76%
Canberra 5.71% 5.65% 5.51%
Darwin 5.51% 5.55% 5.39%

 

Click here to see how property prices have performed throughout Australia.

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