Sydney, Adelaide and Hobart April rents at record highs: CoreLogic RP Data
Capital city rents had a 0.1 percent increase in April, according to the CoreLogic April monthly rent review.
According to CoreLogic RP Data five of the eight capital cities saw a modest rise in rents over the past twelve months, with Sydney up 1.4 percent, Melbourne 1.7 percent, Adelaide 0.5 percent, Hobart 1.1 percent and Canberra 2.5 percent
CoreLogic RP Data research analyst Cameron Kusher said a weakness in the rental market will persist over the year and rents will continue to fall over the coming months.
"The annual change in rental rates continues to be at its slowest pace since before 1996," he said.
“Factors contributing to a slowing in rental growth include falling real wages, excess rental supply in certain areas and lower rates of population growth - all of which have impacted on demand for rental accommodation. With dwelling approvals at recent record highs and construction activity set to peak over the next 24 months, accompanied by many new properties still to settle, we anticipate that the weak rental market conditions will persist with rental growth continuing to slow and, or, fall in most capital cities.
“Based on current market conditions, landlords won’t be in a position to lift rental rates and may actually need to reduce rents in order to keep their tenants. We see renters as holding a stronger negotiation position and where they now have the potential to upgrade into higher grades of accommodation for a similar, or lower rents."
“At the same time last year, rental rates increased by 1.7 percent which indicates a sharp slowdown in rental growth over the past year.
"With rental rates increasing in some cities in April, rates in Sydney, Adelaide and Hobart are at record highs. In all remaining cities, rental rates are now below their highs with the declines recorded respectively in: -0.1 percent in Melbourne, -0.8 percent in Brisbane, -13.7 percent in Perth, -17.3 percent in Darwin and -5.4 percent in Canberra. "