No relief for renters: Domain Rental Report June 2015
National rental figures held at peak levels through June with the exception of Darwin and Perth, with rents falling 4.4% in Perth and 7.7% in Darwin compared to the last quarter, according to new research released by Domain Group.
The Domain Group Rental Market Report found a house surge in Sydney by 1.9% to a high of $530 per week, with Melbourne rent rising 2.6% year-on-year.
Domain Senior Economist, Dr Andrew Wilson, said there has been a steady increase in rental rates across most capital cities; the exceptions being Perth and Darwin, where property supply is outstripping demand. Sydney tenants, according to Dr Wilson, are hardest hit with rents increasing to record highs, reflective of the highly competitive property market.
“Unprecedented residential investor activity in Sydney over the past year and a surge in new dwelling construction have failed to provide rental relief for tenants with house rents increasing by 3.9 per cent over the year and unit rents up by 1%," Dr Wilson said.
“Although increasing rent is likely to continue in most capitals for the remainder of 2015, early signs of relief are emerging for tenants with vacancy rates easing over June. That said, investors are set to remain active – particularly in the Sydney market – given the high yields, low interest rates and the likelihood of continued solid capital growth.
“The data indicates that increased investor activity and construction may be offsetting the rising demand for rental properties. The demand is driven by solid migration levels and low first home buyer numbers."
