National rents were -0.1% lower over the month to September 2019, with a median rental value of $436/week. Nationally, rents have continued to trend lower over each of the last three months after the June results saw rents unchanged over the month. Rental rates across the combined capital cities came in -0.2% lower over the month with a weekly median rental value of $464/week which remains considerably higher than the combined regional markets where the median rental value current sits at $381/week, with rents across regional areas having risen by 0.1% over the month of September 2019.
Looking at the change in rents over the month across the capital cities, Adelaide was the only capital city to record a monthly rise in rents (+0.1%), with rental rates lower in Sydney (-0.3%), Melbourne (-0.1%), Perth (-0.1%), Hobart (-0.2%), Darwin (-0.2%) and Canberra (-0.3%), while unchanged in Brisbane.
According to CoreLogic’s head of research, Tim Lawless, “the broad based weakness in rental conditions can probably be attributed to a rise in rental supply following the surge in investment and residential construction activity through the previous housing boom which has contributed to rental supply. Additionally, as first home buyer numbers have surged, this has likely contributed to a reduction in demand as renters convert to buyers.”
“Markets where rents are rising the fastest have generally seen less of a supply response, creating tight rental conditions and pushing rents higher.”
- National rents were -0.1% lower over the month to September 2019, and down -0.3% on a quarterly basis, however 0.7% higher over the year.
- Capital city rents are -0.5% lower over the quarter and 0.1% higher year-on-year while regional market rents are 0.3% higher over the quarter to be 2.3% higher over the past 12 months.
- Adelaide was the only capital city to record a month on month rise in rents in September 2019, with rents lower monthly across the remaining capital cities, apart from Brisbane where rents were steady.
- In September 2019, Hobart became more expensive to rent a property than Melbourne, with a current median rental value of $464/week (the third highest median rent amongst the capitals, after Sydney ($571/week) and Canberra ($538/week).
- Across the individual capital cities, annual rental growth was positive across all cities except Sydney (-2.2%) and Darwin (-2.7%).
- Gross rental yields are currently recorded at 3.99% nationally compared to 4.14% at the end of the previous quarter and 3.85% a year ago.
- Gross rental yields remain higher relative to the same time last year across all of the individual capital cities, apart from Sydney and Canberra where yields are level relative to last year.