Vacancy rates across capital cities are “tight” despite a “glut of new developments”, however the overall national supply of rental properties remains “fairly stable”, a report has revealed.
A quarterly Domain Rental Report for September noted that while some capital city markets recorded a small 0.6 per cent vacancy, there was “little to no fluctuation in rents” across most cities.
House rents across Sydney, Melbourne, Brisbane, Adelaide and Darwin remained steady, with only Canberra experiencing a 0.5 per cent increase to a median rental of $475 a week.
Similarly, unit rents across Sydney, Melbourne, Brisbane and Canberra were also “holding steady”, with only Adelaide experiencing an increase of 1.8 per cent over the quarter, recording a median rental of $290 per week.
The report noted, however, that both housing and unit rents decreased in cities such as Perth and Hobart, despite Hobart returning the highest gross yields for investors at 5.65 and 5.86 per cent in both markets.
Sydney, in comparison, returned the lowest yields over the quarter at 3.41 and 4.07 per cent for houses and units, despite the city remaining “one of the most expensive capitals for house and unit rentals”, recording a median house rent of $530 and a unit rent of $525 per week.
“Overall, it’s been a steady quarter with most capital cities recording stable rental outcomes,” said Domain senior economist, Andrew Wilson.
“Vacancy rates have remained tight generally despite the number of new developments, indicating continuing solid demand for rental accommodation in most capitals,” he concluded.
[Related: Capital city listings rise]