Gross rental yields in Sydney and Melbourne have lifted from historic lows: CoreLogic

Gross rental yields in Sydney and Melbourne have lifted from historic lows: CoreLogic
Gross rental yields in Sydney and Melbourne have lifted from historic lows: CoreLogic

CoreLogic head of research Tim Lawless has noted although dwelling values have been falling over the past three months, rental rates have been increasing over the same period.

"In fact, rental rates are higher over the year in all capital cities other than Perth and Darwin and within all regional markets except for regional Western Australia," Lawless said.

"The markets experiencing the greatest increases in rents over the past year have been Hobart (10.2%) which has recorded double-digit annual rental growth for the first time since August 2009 and regional Tasmania (7.6%) which is experiencing the strongest rental growth since the end of 2008. 

Lawless said with rental rates climbing at a time when dwelling values are falling, the result is that gross rental yields are starting to repair after a long period of yield compression.

"In fact, at a national level yields have not been as high as they are currently in 11 months."

Rental yields are lifting from record lows in Melbourne and Sydney.

"Throughout the last 12 months, gross rental yields in Sydney and Melbourne have lifted from historic lows.

"Although the increase in yields is gradual, gross rental yields in Sydney are now at their highest level since October 2016 and in Melbourne yields are the highest they have been since September of last year.”

“Ordinarily, higher yields would be a factor attracting more investment activity to the market, however a combination of softer dwelling values, tighter credit and lower sentiment will likely continue to dampen investment participation in the housing market.less competition from the investment sector has likely supported a rise in first home buyer buying."

  • Highest rental yield: Darwin 5.9% 
  • Lowest rental yields: Melbourne 2.9% 

 Gross rental yields in Sydney and Melbourne have lifted from historic lows: CoreLogic

Gross rental yields in Sydney and Melbourne have lifted from historic lows: CoreLogic

Gross rental yields in Sydney and Melbourne have lifted from historic lows: CoreLogic

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Dwelling Construction Corelogic

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