Residential rental market in Australia weakest since 1996

Taylor Scott International News

Rental growth rates in Australia continue to show their weakest performance since 1996 with a rise of just 0.3% in capital cities in February and no change year on year. The latest CoreLogic RP Data Rent Review report suggests that over the coming months rental rates could begin to fall on an annual basis due to additional new rental supply entering the market. A breakdown of the figures show that rental rates have increased over the year in Sydney by 1.5%, in Melbourne by 2.2%, in Canberra by 1.6% and were unchanged in Hobart. Rents fell 07% in Brisbane, by 0.4% in Adelaide, by 8.4% in Perth and by 13.3% in Darwin. This takes the current weekly rental rates to £488 for houses and $467 for apartments, the data also shows. Overall rental rates have been sitting at around $485 per week for the past year. In the last year rental rates had increased by 1.7% highlighting that the slowdown in rental conditions has been quite sharp over the year and Brisbane, Adelaide, Perth and Darwin are currently experiencing some of their largest annual falls on record. Indeed, all capital cities are experiencing annual rental changes which are well below their decade average levels. ‘With construction activity set to peak over the next 24 months, and with many new properties still to settle, there is a real possibility that rental rates will fall over the coming months,’ said research analyst Cameron Kusher. ‘Based on our expectations, landlords have little scope to lift rental rates while for renters, it potentially means more surety in securing accommodation and the potential to upgrade into a higher level of accommodation for a similar cost,’ he explained. ‘The cause of this current slowdown in rental growth is falling wages, excess rental supply in certain areas and lower rates of population growth and population mobility impacting on demand for rental accommodation,’ he added. Taylor Scott International

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