Powered by MOMENTUM MEDIA
subscribe to our newsletter

Rental growth outpacing home price growth

According to a new CoreLogic report, rental rates are on the rise and surpassing the rate of housing price growth.

A CoreLogic Rental Report for the quarter ending December 2017 has revealed that national rental rates grew by 0.3 per cent, an increase from the 0.1 per cent growth rate on the same quarter in 2016, and an overall growth of 2.7 per cent in the 2017 calendar year.

Combined capital city rental growth remained stable, while the regional market experienced a spike of 1.2 per cent.

Capital cities that recorded growth in the December quarter were Melbourne (0.3 per cent), Adelaide (0.9 per cent), Hobart (2.1 per cent) and Canberra (1.6 per cent).

Conversely, rental rates dropped in Sydney (-0.3 per cent), Brisbane (-0.1 per cent), Perth (-0.7 per cent) and Darwin (-0.5 per cent).

Advertisement
Advertisement

The CoreLogic report noted that median weekly rents now sit at $420 for houses and $425 for units.

“Overall, the rental data indicates to us that although rental growth has accelerated over the past 12 months, the quarterly data is pointing to softer growth,” CoreLogic analyst Cameron Kusher said.

“Typically, the first quarter of each year shows strong positive seasonality, so it will be interesting to see how growth over the first quarter of 2018 compares to the first quarter of 2017.

“As the latest result show, the final quarter of 2017 was relatively weaker for rental growth compared to the previous year.”

Mr Kusher has predicted “moderate growth in gross rental yields” if rental growth continues to outpace home price growth.

PROMOTED CONTENT


“With rental growth outpacing dwelling value growth, there may be some moderate improvement in gross rental yields over the coming 12 months,” the analyst concluded.

[Related: Drop in house prices was seasonal: ANZ]

Rental growth outpacing home price growth
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The prudential regulator has written to ADIs to ensure that they are proactively managing lending risks and focusing on lending standards am...

As it waits for APRA to approve its acquisition of MyLife MyFinance, Challenger has flagged plans to expand the bank’s lending remit to co...

Australia has the second-highest mortgage debt as a proportion of GDP among OECD nations, according to a new report. ...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.