Property investors will welcome news from CoreLogic that although rental yields are flat, rental rates are on the rise. According to the latest CoreLogic Rental Report over the December quarter, all capital cities, excluding Canberra, achieved a stronger annual change in rents over the past year compared to the same period in 2016. Simultaneously, regional markets also earned a rental increase.
Nationally, rents rose by 0.3% over the quarter; greater than the 0.1% over the previous quarter but the weakest fourth quarter for rental growth since 2014. Combined capital city rents remained unchanged while combined regional markets recorded growth of 1.2%. For the capital cities it was a moderate slowdown from the 0.1% growth in the third quarter as well as being slower than the 0.3% increase in the fourth quarter of 2016.
Note: The CoreLogic rental report highlights the performance of not only the capital cities but also rental growth and rental yields across each of the SA4 regions (regional) of each state and territory.
Where rents where rates grew and where declined over the December quarter:
- Higher over the quarter – Melbourne (+0.3%), Adelaide (+0.9%), Hobart (+2.1%) and Canberra (+1.6%).
- Lower over the quarter were – Sydney (-0.3%), Brisbane (-0.1%), Perth (-0.7%), & Darwin (-0.5%)
- Median weekly rents nationally are recorded at $420 for houses and $425 for units.
- Weekly rents increased by 0.1% in December 2017 to be 0.3% higher over the final quarter of 2017 and 2.7% higher over the 2017 calendar year.
- Capital city rents now -0.1% lower over the quarter and 2.9% higher year-on-year while regional market rents are 1.2% higher over the quarter to be 3.0% higher over the past 12 months. Rents are lower over the past three months in Sydney, Brisbane, Perth and Darwin and higher elsewhere.
- Over the past 12 months, rents have increased in all capital cities except for Perth and Darwin with the rate of annual rental change higher over the past year than it was over the previous 12 months in each capital city except Canberra.
- Combined capital city house rents were $457/week and unit, $449/week Combined regional markets rents were $351/week for houses and $349/week for units.