Melbourne's annual rental price growth more than halved: Domain

Melbourne's annual rental price growth more than halved: Domain
Melbourne's annual rental price growth more than halved: Domain

Median weekly rents remained flat for the quarter at $430 for houses and $410 for units, according to the latest rental report from Domain.

The report found, Melbourne house rents climbed 2.4% higher over the year and unit rents 2.5%.

However, rental price growth is less than half of the annual growth over the same period in 2017.

House gross rental yields improved over the quarter to 3.13%, however, remained the lowest across all of the Australian capital cities.

Melbourne unit gross rental yields jumped by 0.8% for the quarter to 4.32% — the highest quarterly growth of all Australian capital cities. 

Melbourne's annual rental price growth more than halved: Domain

Domain Senior Research Analyst, Dr Nicola Powell said, "rental prices continued to rise on an annual basis, but the pace of growth is less than half of what it was over the same period in 2017".

"Despite record levels of apartment development and investment activity, total advertised stock volumes have failed to increase," she said. 

"The number of advertised unit rentals has dwindled for four consecutive years and house rentals are also tracking lower over the year.

"The unprecedented influx of new residents from overseas and interstate has placed additional demand on the rental market, which has lead to heightened competition for rental accommodation.

"The impact from the Victorian Government's recent rental reform is also yet to be seen.

"It could have an adverse effect on Melbourne’s rental landscape, with landlords opting for shorter-term leases or selling up.

"However, the overall impact on the rental market is likely to be minor."

Tags: 
Melbourne Rental market

Comments

Be the first one to comment on this article
What would you like to say about this project?