The CoreLogic RP Data Regional Rental Report for December 2015 released today.
The latest CoreLogic RP Data Regional Rent Report revealed that while rental growth remained steady across most parts of regional Australia, Western Australia saw house and unit rents languish; house rents in the state dropped -2.6 per cent over the quarter to December 2015, while unit rents fell -3.0 per cent. Unit rents also stagnated in Queensland and Tasmania.
The December 2015 regional results for the quarter follows on from the recent release of the CoreLogic RP Data capital city rental review for December which also reported a decline in rental growth rates. In some capital city markets, rental growth rates are now at their lowest on record.
Research analyst Cameron Kusher said on a broad basis, for houses, most regional areas were showing a fall or no change at all in rental rates over the 2015 calendar year, with the exception of the two most affordable regional rental markets of Tasmania and South Australia. Across the regional unit markets there was more variation, with rises as great as 6.5 per cent across New South Wales and falls as great as -10.3 per cent in the Northern Territory.
Highest rental growth regions (houses)
- NSW – Murrumbidgee rents increased by 6.9% over the quarter to $310/week
- Vic – Gippsland rents increased by 5.8% over the quarter to $275/week
- Qld – Gold Coast rents increased by 3.9% over the quarter to $499/week
- SA – Outer Adelaide rents increased by 6.7% over the quarter to $320/week
- WA – South Eastern rents increased by 3.1% over the quarter to $330/week
- TAS – Northern rents increased by 3.7% over the quarter to $280/week
Highest rental growth regions (units)
- NSW – Murray rents increased by 4.5% over the quarter to $230/week
- Vic – Wimmera rents increased by 14.3% over the quarter to $240/week
- Qld – North West rents increased by 8.0% over the quarter to $270/week
- SA – Murray Lands rents increased by 5.1% over the quarter to $205/week
- WA – Rents across three regions were unchanged over the quarter
- TAS – Both Mersey-Lyell and Southern rents were unchanged over the quarter
As stated earlier, the only market where house rents fell over the December quarter was in Western Australia. For units, rents were also lower in Queensland Tasmania and Western Australia over the December 2015 quarter.
The Pilbara region in Western Australia, South West Queensland & Mackay are now among the weakest performing rental markets for 2015.
Rental Review - Around the States:
- Houses: median weekly rent - $350/week
- Units: median rental rates rose by 3.1% to $330/week
Over the December 2015 quarter, there was no change in rental growth for houses with performance below the average annual rises of 3.1% over the past five years. For units, median rental rates rose by 3.1% to $330/week over the December 2015 quarter, the largest rise of any broad regional market.
- Houses: median weekly rent $290/week up 1.8%
- Units: median weekly rent $250/week up 2.0%
Both house and unit rents rose over the final three months of 2015, up 1.8% and 2.0% respectively. Despite the latest quarterly rise, house rents are unchanged when compared to December 2014. Both house and unit rental markets across regional Victoria are underperforming when compared to the five year average for the region.
- Houses: median weekly rent $350/week, unchanged over the quarter
- Units: median weekly rent $330/week down -2.9%
While house rents remained steady over the quarter, a -2.9% decline was recorded for units, bringing the typical rental rate to $330/week. Both the detached house and unit rental performance over the past year has underperformed when compared to the five year average for the region and interestingly, regional Queensland house rents are currently recording the same median price as they were over the December 2010 quarter.
- Houses: median weekly rent $265/week up 1.9%
- Units: median unit rent $200/week, unchanged over the quarter
While detached house rents rose across regional South Australia over the December 2015 quarter, up 1.9% to $265/week, unit rents remained steady at $200/week. Broadly speaking, regional South Australia is one of the country’s most affordable rental markets. Over the five years to December 2015, regional South Australian rental rates have risen at an average annual rate of 2.0% for houses and a slightly higher 2.1% for units. By comparison, the current growth across the rental market is underperforming.
- Houses: median weekly rent $370 down -2.6%
- Units: median weekly rent $320 down -3.0%
Rental rates continued to fall over the final quarter of 2015 in regional Western Australia, signifying the third consecutive quarter of declining rents for houses and the second consecutive quarter of falls across regional Western Australia’s unit market after remaining flat for most of the first half of the year. Over the December quarter, for detached houses, Western Australia was the weakest performer across regional Australia, showing a fall of -2.6%, bringing house rents -7.5% lower year-on-year. Unit rents fell by -3.0% over the quarter.
- Houses; median weekly rent $265/week up 1.9%
- Units: median weekly rent $230/week down -4.2%
Outside of Hobart, a typical Tasmanian house, as at December 2015, rents for $265/week, up 1.9% over the quarter and also 1.9% higher than one year ago. For units, the median weekly rental rate is $230, a substantial fall (-4.2%) compared to September 2015, but 1.1% higher than one year earlier. For houses, regional Tasmania, along with regional South Australia are the country’s most affordable rental markets, while the smaller regional Tasmanian unit market is the country’s second most affordable.
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