Weekly rents among the country’s capital cities rose by 0.3% over the twelve months to the end of November, the lowest annual growth rate for the period, according to a monthly report by CoreLogic RP Data.
Only Sydney and Melbourne were able to post increases of at least 2% in rental rates for the year. In Brisbane, Perth, and Darwin, the rates fell over the 12 months.
Other capitals enjoyed an increase of less than 1.5% over the year.
The report noted that the current combined capital city rental rates for houses was at $486 a week, and $464 a week for units.
Dwelling rates for the combined capital cities rose by 0.2% to $483 per week, but only increased by 0.3% over the past 12 months.
Cameron Kusher, research analyst for CoreLogic RP Data, remarked that the rental rate growth slowdown is expected to persist over the coming months as a result of the increased supply of housing and rental stock. Kusher also pointed out that slower migration rates have reduced rental demand.
Moreover, Kusher identified the construction boom across the capital cities, a slowing population growth, and the recent increased activity of investors adding properties to rental stock as other factors inducing the slower rental growth.
“Sydney and Melbourne, which have seen the largest ramp up in new housing supply and investor activity over recent year, 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,” he observed.
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