Most capital cities’ rents falling or flat: Domain Group

Over the September quarter, most of Australia’s capital cities recorded flat or falling rents for units and houses, according to the Domain Group Rental Price Series Quarterly Report.

The September quarter’s national median asking rent for units dropped 0.4%. However, this does bring it up 1.9% over the past 12 months.

A similar trend was seen for houses’ median asking rent, down 0.3% over the quarter and up 0.7% over the year.

Darwin’s house median asking rent over the quarter increased from $645 to $660 per week, bucking the trend.

Perth’s house rent dropped from $460 to $450 per week.

House rents across the other capitals were steady.

Meanwhile, units were more split, falling in Sydney, Perth and Canberra. Hobart, Melbourne, Adelaide and Darwin were all stable.

Brisbane saw a jump from $365 to $370.

Senior economist for Domain Group Andrew Wilson said that Brisbane’s unit rents and Darwin’s house rent were the only positive results.

“Unit rents weakened in Sydney over the September quarter, however, the median asking house rent remained steady at the June quarter’s record level of $510 per week despite record levels of investor activity in the local market. Although, we’ve seen a pause in rental growth over the September quarter, demand will continue to put upward pressure on rents in Sydney,” he said.

“In Sydney, yields are holding, asking rents are still strong and there is currently no signs of overshooting market fundamentals.”

Rental growth in Melbourne for houses and suburban units will also be impacted by demand drivers.

The other capitals are expected to move sideways as a best case scenario.