Annual national rental rate increase drops to all-time low of 0.7%: CoreLogic RP Data
Rental increases are at their slowest pace on record at 0.7% over the year, according to the CoreLogic RP Data August Rental Review.
The extent of the current construction boom across the capital cities and slowing population growth is cited as driving factors.
Over August, weekly rents fell by a further -0.4% and combined capital city rental rates are recorded at $487/week for houses and $462/week for units.
CoreLogic RP Data senior research analyst Cameron Kusher said annual rental growth is well below its 10 year average levels. The 10-year annual rate of rental growth is currently higher than growth over the past year across each capital city.
“Additional accommodation being provided by the current building boom along with record high levels of investment purchasing is adding substantial new dwelling supply to the market at a time where the rate of population growth is slowing,” he said.
“At the same time as rental growth is slowing the rise in home values is pushing rental yields lower. Across the combined capital cities gross rental yields sit at record lows of 3.4% for houses and 4.3% for units.
“The ongoing decline in yields is largely being driven by Sydney and Melbourne where rental growth is sluggish and value growth is strong.
As a result both cities currently have record low rental yields."
