Rental growth slowest since 2005: CoreLogic

Rental rates fell by -0.3% over the final quarter of 2018 which was a slightly more moderate fall than the -0.6% decline over the previous quarter, according to CoreLogic latest quarterly rental report.

The report found that across the combined capital cities, rents fell -0.4% compared to a -0.7% fall the previous quarter and no change over the same quarter in 2017.

The combined regional markets saw rents increase 0.3% over the quarter compared to a -0.1% fall over the previous quarter and a 0.9% quarterly increase a year earlier.

"Sydney (-1.4%) and Darwin (-2.0%) were the only two capital cities in which rents fell over the quarter while rental rates were unchanged in Melbourne," the report said.

"Rates increased over the quarter in Brisbane (+0.3%), Adelaide (+0.6%), Perth (+0.4%), Hobart (+0.9%) and Canberra (+0.6%)."

"The rental change was greater over the December 2018 quarter than the previous quarter in each capital city however, compared to the December 2017 quarter, rental changes were lower in all cities except Brisbane and Perth," the report added.

Rental rates nationally rose by 0.5% over the 2018 calendar year which was their slowest rate of rental growth any time since 2005.

Annual rental growth has been slowing since it peaked at 3.0% in July and August of 2017. 

Rental growth has been slower over the past year compared to a year ago in all capital cities except for Brisbane, Perth and Canberra.

The report noted: "The rental change in Sydney is at an historic low while Brisbane is seeing its strongest rental growth since August 2013 and Perth is seeing its strongest rental growth since July 2013.

"In Sydney and Melbourne in particular, the weaker rental market conditions look set to continue with a high volume of new housing set to be completed over coming years."