Rental rates show little sign of increasing: CoreLogic RP Data
Rents are lower in October in four of the eight capital cities, according to CoreLogic RP Data, who state combined capital city rents were down by 0.1% over the month.
CoreLogic RP Data's October Rent Review said the annual rate of change increased slightly from 0.5% in September to 0.6% in October, with research analyst Cameron Kusher adding all data points to an ongoing softening of rental growth, particularly throughout this year.
"With just two months remaining to year’s end, it seems that rental growth will be very soft over 2015,” he said.
“The construction boom across the capital cities, coupled with slowing population growth, low mortgage rates and the recent heightened level of activity from investors are the major contributing factors to the slowing rental growth.
“Sydney, Melbourne and Brisbane continued to record rental rises over the past year however, each city is seeing a slowing in the pace of rental growth relative to 12 months ago. Clearly, the increase in investment stock is providing landlords with little scope to lift rental rates while the low mortgage rate environment provides little incentive to push yields higher."
