Rental News

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A new survey has found moving house in Sydney can cost almost half of the annual monthly wage. 
Respondents to the to the Fair Go Finance ‘Make Moving Happen’, a survey of 3,383 Australian renters found $3,402 is spent on average to move properties.
 Sydney is the most expensive capital city for renters to move with Melbourne is the cheapest.
Fair Go Finance managing director Paul Walshe said the research also found one in four renters moves every two years, and nearly half (44%) of renters surveyed have needed some assistance to pay the bond.
"If people are using a bond loan purely for bridging finance between properties, they need to make sure they can repay it early without penalty," he said. 
"Features like this allow for greater flexibility when the need to move occurs, especially when it is unexpected due to job transfers or following a relationship breakdown.
"The biggest moving expense is furniture with renters spending around $880 to fit out their new rental. Removal companies were the second biggest expense ($200) and utilities’ connection fees the third ($195)."
Average weekly earnings 
<table border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="bottom" nowrap width="213">
Full-time adult average weekly total earnings
</td>
<td valign="bottom" nowrap width="71">
Weekly
</td>
<td valign="bottom" nowrap width="71">
Monthly
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave national
</td>
<td valign="bottom" nowrap width="71">
$1,545.6
</td>
<td valign="bottom" nowrap width="71">
$6,182.4
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave Vic
</td>
<td valign="bottom" nowrap width="71">
$1,396.6
</td>
<td valign="bottom" nowrap width="71">
$5,586.4
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave NSW
</td>
<td valign="bottom" nowrap width="71">
$1,512.1
</td>
<td valign="bottom" nowrap width="71">
$6,048.4
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave QLD
</td>
<td valign="bottom" nowrap width="71">
$1,440.9
</td>
<td valign="bottom" nowrap width="71">
$5,763.6
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave WA
</td>
<td valign="bottom" nowrap width="71">
$1,691.2
</td>
<td valign="bottom" nowrap width="71">
$6,764.8
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
Ave SA
</td>
<td valign="bottom" nowrap width="71">
$1,348.2
</td>
<td valign="bottom" nowrap width="71">
$5,392.8
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="213">
<a href="https://www.propertyobserver.com.au/https://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0" target="_blank">Source: ABS</a>
</td>
<td valign="bottom" nowrap width="71"> </td>
<td valign="bottom" nowrap width="71"> </td>
</tr>
</tbody></table>
 
Moving cost and bond 
<table border="0" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="130">
Average Moving Cost
</td>
<td valign="top" width="65">
National
</td>
<td valign="top" nowrap width="65">
Sydney
</td>
<td valign="top" nowrap width="65">
Perth
</td>
<td valign="top" nowrap width="65">
Adelaide
</td>
<td valign="top" nowrap width="65">
Brisbane
</td>
<td valign="top" width="65">
Melbourne
</td>
</tr>
<tr>
<td valign="bottom" width="130">
End-of-lease cleaning
</td>
<td nowrap width="65">
 $188
</td>
<td nowrap width="65">
 $149
</td>
<td nowrap width="65">
 $175
</td>
<td nowrap width="65">
 $151
</td>
<td nowrap width="65">
 $244
</td>
<td nowrap width="65">
 $161
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Hire of van
</td>
<td nowrap width="65">
 $142
</td>
<td nowrap width="65">
 $160
</td>
<td nowrap width="65">
 $118
</td>
<td nowrap width="65">
 $141
</td>
<td nowrap width="65">
 $134
</td>
<td nowrap width="65">
 $140
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Removal company
</td>
<td nowrap width="65">
 $200
</td>
<td nowrap width="65">
 $210
</td>
<td nowrap width="65">
 $148
</td>
<td nowrap width="65">
 $210
</td>
<td nowrap width="65">
 $228
</td>
<td nowrap width="65">
 $165
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Transport for family
</td>
<td nowrap width="65">
 $80
</td>
<td nowrap width="65">
 $38
</td>
<td nowrap width="65">
 $88
</td>
<td nowrap width="65">
 $81
</td>
<td nowrap width="65">
 $78
</td>
<td nowrap width="65">
 $47
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Transport for pets
</td>
<td nowrap width="65">
 $20
</td>
<td nowrap width="65">
 $6
</td>
<td nowrap width="65">
 $19
</td>
<td nowrap width="65">
 $13
</td>
<td nowrap width="65">
 $15
</td>
<td nowrap width="65">
 $15
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Buying furniture for new property
</td>
<td nowrap width="65">
 $880
</td>
<td nowrap width="65">
 $1,030
</td>
<td nowrap width="65">
 $1,076
</td>
<td nowrap width="65">
 $1,032
</td>
<td nowrap width="65">
 $795
</td>
<td nowrap width="65">
 $921
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Connection fees (for example connection to phone, electricity or internet)
</td>
<td nowrap width="65">
 $195
</td>
<td nowrap width="65">
 $195
</td>
<td nowrap width="65">
 $218
</td>
<td nowrap width="65">
 $235
</td>
<td nowrap width="65">
 $173
</td>
<td nowrap width="65">
 $203
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Storage (for furniture or items not moving into the new property)
</td>
<td nowrap width="65">
 $84
</td>
<td nowrap width="65">
 $76
</td>
<td nowrap width="65">
 $50
</td>
<td nowrap width="65">
 $53
</td>
<td nowrap width="65">
 $67
</td>
<td nowrap width="65">
 $70
</td>
</tr>
<tr>
<td valign="bottom" width="130">
Other
</td>
<td nowrap width="65">
 $91
</td>
<td nowrap width="65">
 $96
</td>
<td nowrap width="65">
 $44
</td>
<td nowrap width="65">
 $69
</td>
<td nowrap width="65">
 $74
</td>
<td nowrap width="65">
 $73
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="130">
TOTAL
</td>
<td nowrap width="65">
$1,880
</td>
<td nowrap width="65">
$1,962
</td>
<td nowrap width="65">
$1,935
</td>
<td nowrap width="65">
$1,984
</td>
<td nowrap width="65">
$1,810
</td>
<td nowrap width="65">
$1,794
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="130">
AVERAGE BOND
</td>
<td nowrap width="65">
$1,522
</td>
<td nowrap width="65">
$1,816
</td>
<td nowrap width="65">
$1,768
</td>
<td nowrap width="65">
$1,670
</td>
<td nowrap width="65">
$1,578
</td>
<td nowrap width="65">
$1,514
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="130">
MOVING COSTS+BOND 
</td>
<td nowrap width="65">
$3,402
</td>
<td nowrap width="65">
$3,778
</td>
<td nowrap width="65">
$3,703
</td>
<td nowrap width="65">
$3,653
</td>
<td nowrap width="65">
$3,388
</td>
<td nowrap width="65">
$3,308
</td>
</tr>
</tbody></table>
**Excludes Darwin, Hobart and Canberra due to insufficient sample
Lost bond 
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<tr>
<td valign="bottom" nowrap width="65">
NATIONAL
</td>
<td valign="bottom" nowrap width="65">
 $1,083.64 
</td>
<td valign="bottom" nowrap width="65"> </td>
<td valign="bottom" nowrap width="65"> </td>
</tr>
<tr>
<td valign="bottom" nowrap width="65">
VIC
</td>
<td valign="bottom" nowrap width="65">
 $1,085.58
</td>
<td valign="bottom" nowrap width="65">
Melbourne
</td>
<td valign="bottom" nowrap width="65">
 $1,100.54
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="65">
NSW
</td>
<td valign="bottom" nowrap width="65">
 $1,063.60
</td>
<td valign="bottom" nowrap width="65">
Sydney
</td>
<td valign="bottom" nowrap width="65">
 $1,180.76
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="65">
QLD
</td>
<td valign="bottom" nowrap width="65">
 $998.32
</td>
<td valign="bottom" nowrap width="65">
Brisbane
</td>
<td valign="bottom" nowrap width="65">
 $975.44
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="65">
WA
</td>
<td valign="bottom" nowrap width="65">
 $1,115.58
</td>
<td valign="bottom" nowrap width="65">
Perth
</td>
<td valign="bottom" nowrap width="65">
 $915.44
</td>
</tr>
<tr>
<td valign="bottom" nowrap width="65">
SA
</td>
<td valign="bottom" nowrap width="65">
 $1,292.27
</td>
<td valign="bottom" nowrap width="65">
Adelaide
</td>
<td valign="bottom" nowrap width="65">
 $1,407.28
</td>
</tr>
</tbody></table>
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mick.cee-iDmgDDAmu8

Sydney most expensive capital city to move for renters

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Apartment rents Australia-wide rose 2.4% over the year to September to arrive at a median price of $420 per week, with total vacancy increasing to 3%, according to the 2015 Q4 residential review from Knight Frank.
The review found apartment sales volume, capital values and rents grew nationwide despite gross rental yields tightening in the September 2015 quarter.
Michelle Ciesielski, director of residential research for Knight Frank said in September 2015, gross rental yields for Australian apartments averaged 4.64%.
"Over the year to September 2015, Australian apartment capital values have experienced 7.7% growth with the last three months of this period recording growth of 2.4% to stand at a median capital value of $473,500," she said.
"Capital growth amongst the capital cities has continued to be led by Greater Sydney (at 15.6%), Greater Hobart (at 5.8%) and Greater Melbourne (at 5.4%) over the past year.
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"When utilising growth in sales volume as a leading indicator, it would be expected that Greater Brisbane and Greater Melbourne are likely to witness further capital growth heading into 2016. Greater Hobart and the Australian Capital Territory (ACT) are displaying signs of a potential upswing over the medium term for capital growth after experiencing negative growth in 2014.
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"Highest annual rental growth is still being experienced in Greater Sydney, at 5.7% over the year to September 2015 while achieving a median rent of $560 per week. Although since mid-2015 rents in Greater Sydney have remained steady as total vacancy has fallen from 2.1% to 1.9% over this time, it is likely we will once again see a rise in rents early in the new year.
"With continued negative growth in apartment capital values over the past year, Greater Darwin recorded the highest gross rental yield at 5.87% in September 2015, although rents continued to fall throughout this period. As shown in Figure 4, Greater Sydney returns the lowest gross rental yields across Australia, at 4.30%. When plotted over a five year range, current yields in Greater Sydney are at the lower end of the range; a similar experience being recorded by Greater Brisbane and Greater Perth."
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jonathanchancellor-7SQnKwU6yx

Apartment sales volume, capital values and rents grow: Knight Frank

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Capital city rents declined over the past year for the first time since 1996 though weekly rents rose slightly, according to the latest CoreLogic RP Data update.  
Rental rates across the combined capital cities were -0.2% lower over the past year, while weekly rents increased by a fraction 0.2% in March for the capital cities. 
Over the year, Melbourne recorded the biggest increase in rental rates at 2 per cent followed by Sydney at 1.4 per cent, Canberra 1.2 per cent and Hobart 0.3 per cent, shows CoreLogic RP Data March rent review figures.
On the flipside, the cities to see a drop in rents included Darwin -11.5%, Perth -8.4 per cent, Adelaide -1.0%, and Brisbane with a -0.7% drop.
The combined capital city house rents were recorded at $489 per week in March while unit rents were $469 per week, said CoreLogic analysts. Over the past month, house rents have increased by 0.1% and unit rents by 0.4% and over the past three months, house rents rose 0.5% compared to a 0.9% rise in unit rents.
The March results show that recent rental increases are likely to be seasonal which is further highlighted by the fact that rents are lower over the year. Over the past 12 months, house rents were -0.5% lower and unit rents increased by 1.5%. 
“It is important to note that a much higher proportion of total unit stock is rented compared to housing stock,” said senior analyst Cameron Kusher.
“We have been tracking the annual change in capital city rents since 1996 and this is the first time we have seen rental rates falling.” 
“The extra accommodation supply, as a result of the current building boom, along with the recent record high levels of investment purchasing is adding substantial new dwelling supply to the rental market at a time when the rate of population growth is slowing from quarter to quarter. Furthermore, wages are increasing at their slowest annual pace.
“Today’s results also highlight a swift easing in rental market conditions over the past year. We’ve attributed this ease to a variety of influences such as falling real wages, excess rental supply in certain areas and lower rates of population growth which have impacted on demand for rental accommodation.”
“With dwelling approvals recently at record highs, construction activity set to peak over the next 24 months and many new properties still to settle, the rental demand weakness is expected to persist. In all probability, there won’t be much scope for landlords to lift rental rates given current conditions have given greater negotiation opportunities to those in rental situation.”
While rental rates remain at record highs in Sydney and Melbourne, rents are lower than their previous peaks in all remaining capital cities. The decline in dwelling rents from peaks is recorded at: -0.9% in Brisbane, -1.2% in Adelaide, -12.8% in Perth, -0.1% in Hobart, -15.6% in Darwin and -7.4% in Canberra.
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Annual capital city rental change in decline and lowest since 1996: CoreLogic RP Data

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Rental property website Rent.com.au Limited (ASX: RNT) is raising more than $5.4 million through a rights issue to fund its offline branding campaign, the company said in a release.
Rent.com will issue up to 36,376,607 shares at $0.15 each and it is a fully underwritten, non‐renounceable pro rata offer.
The issue will raise $5,456,491 (before costs) and the company will have a total of $8.5 million cash (after costs) after completion of the issue.
The highlights of the fund raising are:  
* Demand for sub‐underwriting allocation was heavily oversubscribed
* Funds to be used primarily on commencing offline marketing activities
Rent.com founder and managing director Mark Woschnak said he was pleased with the strong demand from institutional and sophisticated investors. 
“We recently announced that March 2016 was one of our strongest months on record, with the strongest new agent registrations since listing and all‐time highs in the number of unique visitors and also non‐agent listings on the site,” Woschnak said.
“We have a strong Board and executive team, robust and scalable technology and are now well capitalised to further accelerate our commercialisation objectives by commencing offline marketing activities to support our recently deployed national sales team.”
Shareholders as at the Record Date of April 13 will be eligible to buy one additional share for every three they hold at the Record Date, with acceptance forms to be returned by April 28, the media release said.
The issue price of $0.15 per share represents an 18% discount to the 10-day Volume Weighted Average Price (“VWAP”).
Jett Capital Advisors Pty Ltd are the lead manager and underwriter of the Offer, with GMP Securities acting as brokers. 
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prateek24-ezbwHMbNAk

Rent.com.au to raise $5.45 million through rights issue

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Perth is seeing a surge in the leasing of one to three-bedroom properties, helping tenants take advantage of improved affordability in the rental market, according to recent reiwa.com analysis.
REIWA president Hayden Groves said one-bedroom leased property activity had increased by 50 percent in the March quarter, while two and three-bedroom properties had increased by 18 per cent.
“There was a significant amount of leasing activity in the one to three bedroom market over the quarter, while four and five bedroom properties experienced a small decline."
“Affordability in Perth’s rental market has improved over the last 18 months, tenants who may have been living in shared accommodation are now finding that they can afford to move out on their own, which is why we’re seeing this shift to smaller households,” Groves said.
In the three months to 31 March 2016, the total volume of leased properties in the Perth metro area increased by 17 per cent on the December 2015 quarter.
“While rental listings in Perth remain above the long-term average, the number of properties leased in the March quarter has soared well above the growth of listings which is a real positive for the market."
He said this has brought the vacancy rate down to 5.6 percent in the March quarter from six per cent in the December quarter as tenants have soaked up stock.
At a sub-regional level, nearly half of Perth’s sub-regions maintained a stable overall median rent in the March quarter, while there were mixed results for average leasing days across the metro area.
“The biggest improvement in average leasing days was felt in the Perth City, Fremantle and Western Suburbs sub-regions, while on average it took longer to lease a property in Joondalup South, Wanneroo North West and Wanneroo South in the March quarter than it did in the December 2015 quarter,” Groves said.
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Leasing activity spikes in Perth rental market as affordability improves: REIWA

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EXPERT OBSERVER
The CoreLogic quarterly rent review released today shows national weekly rents increased by 0.3% over the second quarter of 2019; slower than the 1.0% increase the previous quarter and level with rental growth over the June 2018 quarter.
Capital city rents were 0.1% higher over the quarter and -0.1% lower year-on-year. Regional market also saw an increase and were 0.7% higher over the quarter to be 1.9% higher over the past 12 months.
The annual change in combined capital city rents remains at record low levels (based on data which is available back to 2005) while annual growth in regional rents has remained fairly steady over the past quarter.
The report found:
<ul>
<li>
Rents increased in all capital cities except for Sydney and Darwin over the past 12months
</li>
<li>
Brisbane and Perth were the only two capitals where the annual change in rents over the past year was superior to growth over the same period in 2018
</li>
<li>
Gross rental yields are currently recorded at 4.14% nationally compared to 4.10% at the end of the previous quarter and 3.83% a year ago.
</li>
<li>
Gross rental yields increased over the past quarter across all capital cities except for Sydney and Canberra while over the past year, yields have firmed across all capital cities.
</li>
<li>
Nationally, rents were unchanged on a monthly basis in June 2019.
</li>
<li>
Over the second quarter of 2019, national rents have increased by just 0.3%; a sluggish rate of growth and well down on the seasonally strong first quarter in which rents rose by 1.0%.
</li>
<li>
At the end of the 2018-19 financial year, national rents were recorded at $438/week.
</li>
<li>
Rental rates across the combined capital cities sat at $466/week and substantially higher than the $380/week across the combined regional markets
</li>
<li>
Looking at the change in rents over the month across the capital cities, rents were lower in Sydney, Darwin and Canberra; they were unchanged in Perth and higher elsewhere.
</li>
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<img class="align-center" src="https://www.corelogic.com.au/sites/default/files/inline-images/Rental%20Yeild_20190708.PNG" alt="Rental Yeild_20190708.PNG" width="610" height="214" data-entity-type="file" data-entity-uuid="c1236628-e3c8-4737-9cd1-2ce69c0ce9b0" data-image-style="" data-responsive-image-style="wide" data-zoom-image-style="_as_uploaded" data-mfp-src="https://www.corelogic.com.au/sites/default/files/inline-images/Rental%20Yeild_20190708.PNG">
 Although rental rates in Sydney are falling, the city still remains as the most expensive city to rent a property with a median rent of $580/week. For many years Hobart has been the most affordable rental market however, the rapid growth in rents over recent years has seen it become more expensive than Brisbane, Adelaide, Perth and Darwin and on par with the cost of renting in Melbourne.
Overall, the rental market remains quite mixed, however, it is clear that Sydney accounts for a large share of overall renters with annual falls in Sydney leading to a fall in the combined capital city index.
Sydney and Melbourne continues to experience the impact of heightened demand from investors over recent years along with a substantial ramp-up in new housing (largely apartment) supply, much of which was purchased by investors.
Darwin rents have been falling for many years and they continue to decline. The past year has seen a change of direction for both the Brisbane and Perth rental markets, following a number of years of declines rents are now climbing again.
CAMERON KUSHER is the head of research for the Australian branch of CoreLogic
Kusher regularly posts on the <a href="https://www.corelogic.com.au/news" target="_blank">CoreLogic website</a>.
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