Capital city rents climbing slowest since 1995: CoreLogic RP Data

Capital city rents climbing slowest since 1995: CoreLogic RP Data
Capital city rents climbing slowest since 1995: CoreLogic RP Data

Capital city rents are climbing at the slowest pace recorded since December 1995, with the annual rate of rental appreciation now 0.9% and continuing to fall.

According to CoreLogic RP Data's July Rental Index Results weakly rents over the past three months have fallen in every capital city except Melbourne.

CoreLogic RP Data head of research Tim Lawless said with home values continuing to rise, gross rental yields are trending lower. 

"Dwelling rental rates across the combined capital cities are sitting at $486 per week and fell by -0.3% over the month of July. However, weekly rents are up by 0.3% over the first seven months of the year and have increased by just 0.9% over the past 12 months," Mr Lawless said.

“Rental appreciation continues to be sluggish and can be largely attributed to the ongoing boom in dwelling construction across Australia’s capital cities accompanied by record high participation in the housing market from investors.

“With capital growth likely to continue outpacing rental growth, we expect that rental returns could push even lower over the coming months. From an investment perspective it means that capital growth is going to be much more important for a return on investment.”

Combined capital city gross rental yields were 3.4% for houses in July and 4.3% for units. Last year gross rental yields for houses was 3.8% for houses and 4.6% for units.

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Capital city rents climbing slowest since 1995: CoreLogic RP Data

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Rental Yield Rental Property

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