National Investment Property - June Market Snapshot
Asking rents down
In June, capital city asking rents were down 0.2 per cent for both houses and units – $553 p/w houses and $441 p/w units, according to SQM Research. In comparison to 12 months previous, asking rents for houses increased 0.4 per cent but declined 0.7 per cent for units. Adelaide, Darwin and Hobart were the only states to experience increases in weekly rents for both houses and units. Across the capitals: Canberra $618 p/w houses / $462 p/w units; Sydney $689 / $502; Darwin $512 / $370; Brisbane $459 / $372; Adelaide $395 / $308; Hobart $435 / $388; Melbourne $540 / $424; and Perth $448 / $336.
Vacancies decline
SQM Research showed the national vacancy rate declined 0.1 per cent to 2.2 per cent in May. The total number of vacancies Australia-wide was 75,093. Most states recorded minor declines ranging from 0.1 per cent to 0.3 per cent: Canberra 1.2 per cent; Sydney 3.3 per cent; Darwin 3.3 per cent; Brisbane 2.4 per cent; Adelaide 1.1 per cent; Hobart 0.5 per cent; Melbourne 1.8 per cent; and Perth 3.1 per cent.
Rental yields up
CoreLogic’s national Hedonic Rental Index held firm in May and was up 0.4 per cent over the past twelve months. The Darwin (-5.2 per cent) and Sydney (-2.9 per cent) rental markets recorded the greatest declines in rental growth over the 12 months, while Hobart rents (+4.9 per cent) rose the fastest amongst the capitals. Despite sluggish rental markets, gross rental yields continued to recover – with the national gross rental yield at 4.13 per cent, the highest gross yield since May 2015, but still 14 basis points below the decade average of 4.27 per cent.
But growth slowing
Data from CoreLogic has also showed rents are trending lower, with national rents just 0.4 per cent higher over the year to 30 April 2019 – the slowest annual rate of growth on record. Darwin recorded the largest drop in rents (-5.6 per cent) over the year, followed by Sydney (-3.1 per cent, as an emerging oversupply of apartments helps push rents down). Rents in Melbourne (+1.8 per cent), Brisbane (+1.5 per cent) and Adelaide (+1.4 per cent) rose marginally, while rental growth in Hobart surged 5.7 per cent where a shortage of rental accommodation is pushing rents higher.
Original article can be found: https://www.rentcover.com.au/Info-Centre
