Rental Growth

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Rents are lower in October in four of the eight capital cities, according to CoreLogic RP Data, who state combined capital city rents were down by 0.1% over the month.
CoreLogic RP Data's October Rent Review said the annual rate of change increased slightly from 0.5% in September to 0.6% in October, with research analyst Cameron Kusher adding all data points to an ongoing softening of rental growth, particularly throughout this year.
"With just two months remaining to year’s end, it seems that rental growth will be very soft over 2015,” he said.
“The construction boom across the capital cities, coupled with slowing population growth, low mortgage rates and the recent heightened level of activity from investors are the major contributing factors to the slowing rental growth. 
“Sydney, Melbourne and Brisbane continued to record rental rises over the past year however, each city is seeing a slowing in the pace of rental growth relative to 12 months ago. Clearly, the increase in investment stock is providing landlords with little scope to lift rental rates while the low mortgage rate environment provides little incentive to push yields higher."
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mick.cee-iDmgDDAmu8

Rental rates show little sign of increasing: CoreLogic RP Data

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The performance gap between quality apartments and investment-grade product will continue to widen as developers respond to declining rental growth, according to leading property firm, Mosaic Property Group.
Managing director, Brook Monahan said despite doom and gloom on rental growth figures, quality over quantity will always reign supreme in responding to the highs and lows of property market cycles.
“Rental growth has now slowed to a 20-year low as rental supply in the capital cities rises,” Mr Monahan said.
“The latest CoreLogic RP Data figures show the year on year growth in asking rents fell to 0.7% from 0.9% in July, the lowest since records started in December 1995.
“If you are investing in property, then there has never been better proof that you need to stand out from the pack, as increased supply and declining population growth influence Australia’s rental market.
“We strongly believe that there remains – and will continue to remain – a massive flight to quality in the next stage of the Brisbane residential cycle.
Mr Monahan said rental success on Mosaic’s newest completed project, Cove on Camborne, demonstrated that well researched, individually designed properties continue to deliver strong yields in a slowing rental market.
“There is a large gap in quality across different product being delivered to the market,” he said.
“Mosaic’s property management experts successfully tenanted 100% of investor-owned apartments at Cove on Camborne in Alderley prior to settlement, for above market rent and with over performing gross yields.
“This could only be achieved through a mandate for quality developments and use of in house construction and property management teams to ensure our development ethos is carried throughout the project life cycle."
Mr Monahan said Mosaic Property Group retains long-term property management rights on all of their developments, helping to achieve higher rental returns for their clients by maintaining control over all aspects of the development.
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j.ballantyne1990-6AQqhLzZaK

Quality over quantity key to unlocking 20-year rental low

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Rental rates for houses are down 1.0% and units up by 0.2% for the three months to August, according to CoreLogic RP Data's August Rental Index Results.
According to CoreLogic RP Data, more recently the rate of rental growth has started to slow even further. Annually, house rents increased by 0.5% annually and units up 1.6%. 
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jonathanchancellor-7SQnKwU6yx

Rental rates for houses down 1.0%: CoreLogic RP Data

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NSW suburbs dominate Investar's top 10 fastest rental growth suburbs.
But the Melbourne suburb, Sunshine's $300 weekly two bedroom rentals lead the country with 20% annual growth over the past year.
Rank Suburb State Postcode Dwelling Type Bedrooms Median Rent 1 Year Change
1 SUNSHINE VIC 3020 Unit 2 $300 20.00%
2 WILLOUGHBY NSW 2068 Unit Studio &amp; 1 $430 19.44%
3 RYDE NSW 2112 Unit Studio &amp; 1 $440 17.33%
4 RYDE NSW 2112 Unit 2 $500 16.27%
5 ST IVES NSW 2075 House 4 $1095 15.26%
6 RIVERWOOD NSW 2210 Unit 2 $460 15.00%
7 MULGRAVE VIC 3170 House 4 $540 14.89%
8 BELLA VISTA NSW 2153 House 4 $860 14.66%
9 LABRADOR QLD 4215 Unit Studio &amp; 1 $295 13.46%
10 GLEBE NSW 2037 Unit 2 $680 13.33%
Source <a href="https://www.realestateinvestar.com.au/ME2/Default.asp" target="_blank">Investar July 2015</a>
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jchancellor-FAypfDUnLy

Sunshine rentals lead, but Sydney dominate Investar's 10 fastest rental growth suburbs 

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The far north WA town of Broome notched up a 10% rental growth in the March quarter, according to REIWA.
<table class="data-table members-data-table table-striped">
<thead><tr>
<th>RENTAL MARKET</th>
<th>MARCH 2015 QUARTER</th>
<th>CHANGE FROM 3 MONTHS AGO</th>
<th>CHANGE FROM 12 MONTHS AGO</th>
</tr></thead>
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<td>Perth Metropolitan - Median Weekly Rent</td>
<td class="number-right">$430</td>
<td class="number-right">-2.3%</td>
<td class="number-right">-5.5%</td>
</tr>
<tr>
<td>Perth Metropolitan - Vacancy Rate</td>
<td class="number-right">4.4%</td>
<td class="number-right">0.2%</td>
<td class="number-right">0.9%</td>
</tr>
<tr>
<td>Mandurah-Murray - Median Weekly Rent</td>
<td class="number-right">$380</td>
<td class="number-right">2.7%</td>
<td class="number-right">0%</td>
</tr>
<tr>
<td>Mandurah-Murray - Vacancy Rate</td>
<td class="number-right">6.4%</td>
<td class="number-right">3.1%</td>
<td class="number-right">3.6%</td>
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<tr>
<td>Bunbury Urban Area - Median Weekly Rent</td>
<td class="number-right">$368</td>
<td class="number-right">0.8%</td>
<td class="number-right">0%</td>
</tr>
<tr>
<td>Bunbury Urban Area - Vacancy Rate</td>
<td class="number-right">4.2%</td>
<td class="number-right">-2.4%</td>
<td class="number-right">2.4%</td>
</tr>
<tr>
<td>Geraldton-Greenough - Median Weekly Rent</td>
<td class="number-right">$360</td>
<td class="number-right">12.5%</td>
<td class="number-right">0%</td>
</tr>
<tr>
<td>Geraldton-Greenough - Vacancy Rate</td>
<td class="number-right">7.3%</td>
<td class="number-right">-0.4%</td>
<td class="number-right">3.1%</td>
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<td>Kalgoorlie-Boulder - Median Weekly Rent</td>
<td class="number-right">$360</td>
<td class="number-right">5.9%</td>
<td class="number-right">0%</td>
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<td>Kalgoorlie-Boulder - Vacancy Rate</td>
<td class="number-right">3.1%</td>
<td class="number-right">0.2%</td>
<td class="number-right">-1.9%</td>
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<td>Albany Urban Area - Median Weekly Rent</td>
<td class="number-right">$320</td>
<td class="number-right">-8.6%</td>
<td class="number-right">0%</td>
</tr>
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<td>Albany Urban Area - Vacancy Rate</td>
<td class="number-right">1.7%</td>
<td class="number-right">0%</td>
<td class="number-right">0.1%</td>
</tr>
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<td>Busselton Urban Area - Median Weekly Rent</td>
<td class="number-right">$395</td>
<td class="number-right">-1.3%</td>
<td class="number-right">0.5%</td>
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<td>Broome Urban Area - Median Weekly Rent</td>
<td class="number-right">$600</td>
<td class="number-right">10.1%</td>
<td class="number-right">0%</td>
</tr>
<tr>
<td>Broome Urban Area - Vacancy Rate</td>
<td class="number-right">0%</td>
<td class="number-right">0%</td>
<td class="number-right">0%</td>
</tr>
</tbody>
</table>
<ol>
<li>Median prices and sales of properties are derived from Landgate data - Excludes properties &gt; 1 Ha.</li>
<li>Rental data obtained from surveys of REIWA members.</li>
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