Rental rates across Australia’s combined capital cities drop in August
Rental rates fell across the combined capital cities over August with the exception of Melbourne, Darwin and Canberra according to CoreLogic's latest Rent Review.
The combined capital city drop was 0.3 percent month on month
Cameron Kusher, CoreLogic research analyst said weaker rental market conditions are expected to continue as overall housing supply grows.
"Over the past year rental rates have fallen by -0.5 percent and are now -1.4 percent lower than when they peaked back in May 2015," he said.
"In contrast, we saw capital city rental rates increase by 0.7 percent at this time last year.
“As long as wages growth continues to stagnate, coupled with historically high levels of new dwelling construction and slowing population growth, landlords won’t have much scope to increase rents. On the flipside, renters are now in a much better position to negotiate.
"There is the potential for a flight of tenant demand towards higher quality tenancy options in newer buildings.
“It may be more difficult for owners of older units with fewer amenities to compete with better located and facilitated new unit stock, particularly if there is little pricing differential."
Over the past 12 months, rental rates have increased in Melbourne (+2.9 percent), Hobart (+6.8 percent) and Canberra (+2.6 percent). Rental rates are unchanged over the year in Sydney and have fallen in Brisbane (-1.1 percent), Adelaide (-0.3 percent), Perth (-9.4 percent) and Darwin (-14.1 percent). Melbourne, Hobart and Canberra have each recorded stronger rental growth over the past year compared to the previous year.
