Darwin rents in decline with Hobart the strongest performer: Domain Group
Rents in most capital cities have remained at all-time highs over the March quarter despite increased supply from investors and developers, according to the Domain Group Rental Report.
Median weekly asking rents for houses increased by 0.8% over the March quarter while unit rents rose by 0.4% nationally.
The March national capital city vacancy rate was 2% for houses and 2.6% for units, contributing to an overall dwelling vacancy rate of 2.2%.
Rental markets were steady or declining in most capital cities with the exception of Melbourne and Hobart which both saw solid increases over the quarter.
Continuing the trend from last quarter, Hobart recorded the strongest increase in asking rents for both houses and units, which rose by 3.1% and 3.7% respectively.
Source: Domain Group
“Despite this recent growth, Hobart remains the most affordable of all the capitals, although it is rapidly closing-in on the next most affordable, Adelaide,” said Wilson.
Melbourne was the only other capital city to record increases in the median weekly asking rents over the quarter.
Melbourne unit rents rose by 1.4% to $365, house rents by 2.5% to $390, both new records.
Source: Domain Group
Sydney, Brisbane, Adelaide and Canberra house and unit asking rents remained steady during the period, while Darwin house rents decreased by 1.9% and unit rents dropped by 3.7%. In Perth, house rents were again flat while unit rents fell by 1.3%.
“The falls we’ve seen in Darwin and Perth demonstrate a softening of demand and increased supply in those local markets. Darwin house and unit rents have each fallen by 7.1% over the year, the largest decline of any of the capitals,” Wilson said.
Regular observer Terry Ryder said of Domain Group's figures: "Domain Group rather missed the point with its media release on the latest figures for capital city rents."
