Press Release – Australian capital city rents rise over the first quarter: CoreLogic – Matthew George Urban Activation – Press Release
Curated from Property Observer as published 8th April
The first CoreLogic Quarterly Rental Review for 2019, which tracks median rents and rental yields across Australia, shows that national weekly rents have risen by 1% during the first three months of the year.
“This seasonally strong first quarter has delivered the highest increase in weekly rents since the corresponding first quarter a year ago,” says Cameron Kusher, Research Analyst for CoreLogic.
“Our regional housing markets are performing marginally better than the capital cities, many of which have been experiencing weaker rental market conditions in recent years due to excess housing supply and growing investor activity.”
“Quarterly rents have increased across all capital cities, bar Sydney and Darwin. Hobart is experiencing notable growth, with rents increasing by 3.6% over the past quarter. However, with a median rent of $582 per week, Sydney remains Australia’s most expensive city for tenants by far.”
The Quarterly Rental Review also highlights a national increase in yields over the past three and 12 months. Gross rental yields for the first quarter are 4.10% compared to 3.95% in the previous quarter and 3.77% a year ago.
Darwin has the highest rental yield across the country with an annual median of 6%.
Sydney remains Australia’s most expensive capital city market, with a median weekly rent of $582, despite a decline of -3.1% over the past 12 months. While rents in Sydney remained the same as the previous month, they increased by 0.5% over the past quarter. Sydney also has the lowest rental yields out of all capital cities, at 3.5% over the past quarter.
KEY FINDINGS – RENTS AND YIELDS
- Nationally, rents increased by +1% over the March quarter and by 0.4% over the past 12 months. Combined capital city rents were 0.9% higher than the December 2018 quarter but -0.1% lower than the previous March quarter. This is the lowest annual change since CoreLogic started tracking rents in 2005. Regional rents were slightly stronger, with a 1.1% increase over the quarter and a 1.8% increase over the past year.
- In the first quarter, rents climbed in all capital cities except for Darwin (-0.3%). Hobart was by far the strongest performer, with a 3.6% increase in rent over the past quarter, followed by Perth (+1.8%) and Canberra (+1.5%). Hobart also experienced the highest increase in rent over the past 12 months (+5.4%) while at the other end of the scale the media rent in Darwin fell by -5.7%.
- Nationally, the median rent is $436 per week. The median rent across the capital cities is $465 per week, and $378 per week across the regionals.
- Gross rental yields have increased from 3.8% to 4.1% nationally. Across the combined capitals, the average rental yield is 3.8% (up from 3.5%). Regional yields are far higher at 5.1%, up from 4.9% 12 months ago.The report showed Canberra with a median rental cost of $550 per week, an increase of 1.5% over the past quarter and 3.6% over the past 12 months. Canberra is one of only two capital cities (alongside Darwin) to experience a drop in weekly rent over the past month (-0.1%).
In Melbourne, rents are $454 a week – an increase of 1% over the quarter and 2.1% over the past 12 months. Melbourne also reported the greatest increase in rental yields out of all capital cities, with current rental yields being 3.6%, compared to 3.1% a year ago. Despite the rise in yields, Melbourne has the second lowest weekly rental yield out of all capital cities (after Sydney).
Brisbane rents are starting to climb again, with Brisbane now having a median weekly rent of $436. This is an increase of 0.8% over the past quarter, and 1.4% over the past 12 months.
Perth is the most affordable capital city to rent in with a median weekly rent of $385. However, it is showing signs of growth, achieving the second highest quarterly rate (after Hobart) with an increase of 1.8% over the past 3 months. Over the past year, Perth rents have increased by 2.1%.
Adelaide closely follows Perth to become the second most affordable capital city to rent a property in, with a median weekly rent of $386. Like Brisbane, it experienced a 0.8% rise in rents over the March quarter. Over the past 12 months, rents in Adelaide have risen by 1.2%. Gross rental yields have remained static over the year at 4.4%.
Hobart reported the strongest growth in rents, up 3.6% over the past quarter to $453 per week. Over the past year, rents have increased by 5.4%. Hobart also reports the strongest growth over the past month, with a 1.6% increase in weekly rent. Hobart also reported the second highest rental yield (after Darwin) of 5.1%, which remained the same as 12 months ago.
Darwin has experienced the most significant decline in rent to achieve a median weekly rent of $458. This is down -0.3% over the quarter and -5.7% over the past year. In addition, Darwin also reports a drop of 0.2% over the past month. However, at 6%, Darwin has the highest gross rental yield out of all the capital cities (up 0.1% on the past 12 months).
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