CoreLogic RP Data today released its country-wide regional rental report which confirmed rental market conditions outside of the capital cities remained weak over the September 2015 quarter.
House rents were flat to falling over the quarter across each of the regional markets, with weekly rents down the most over the quareter in regional WA (-2.6%), regional NT (-2.1%) and regional Victoria (-1.7%). The remaining capital cities all recorded flat condition over the three months ending September 2015.
Regional unit markets also showed weak rental conditions, with regional Tas the only area recording an increase in apartment rents over the quarter (+2.2%. Unit rents were down over the quarter in regional WA (-2.9%), and regional NSW (-1.5%) while the remaining capital ciities all showed flat rental conditions.
Snapshot – highest rental growth by region
- NSW - Northern rents increased by 3.3% over the quarter to $310/week
- Vic - Wimmera rents increased by 3.3% over the quarter to $238/week
- Qld – West Moreton rents increased by 5.0% over the quarter to $318/week
- SA - Eyre rents increased by 0.9% over the quarter to $288/week
- WA – South Western rents increased by 3.1% over the quarter to $330/week
- TAS – Southern rents increased by 1.9% over the quarter to $265/week
- NSW – Mid-North Coast rents increased by 3.2% over the quarter to $320/week
- Vic – Wimmera rents increased by 2.5% over the quarter to $205/week
- Qld – South West rents increased by 11.8% over the quarter to $308/week
- SA – Outer Adelaide rents increased by 4.0% over the quarter to $260/week
- WA – Central rents increased by 5.6% over the quarter to $265/week
- TAS – Mersey-Lyell rents increased by 4.5% over the quarter to $230/week
CoreLogic RP Data head of research Tim Lawless said, “With new housing supply increasing and investor purchasing at record highs, we have seen a significant slowdown in the rate of rental growth over the past couple of years and we expect this trend to continue over the coming year."
Annually, rents rose across some of the regional rental markets, however, Mr Lawless noted that the performance as a whole remains relatively weak.
Tasmania recorded the strongest rental growth across the country with a 2 per cent increase for houses and 4.5 per cent for units.
On the other hand, Mr Lawless said, “the most substantial fall in rental rates, relative to September last year, were across regional Northern Territory, where house rents are down -6.0 per cent over the year and units by a greater -6.5 per cent. Furthermore, rents are down by -5.6 per cent across the regional Western Australia unit market.
“Those regions with strong ties to the mining and resources sector are pulling regional rental lower as demand for housing continues to moderate. On the other hand, regional lifestyle and coastal markets are bucking the softening trend to some extent with showing year on year rises.”