Weekly rents continue to fall: CoreLogic RP Data

Property ObserverMay 11, 20160 min read

Combined capital city weekly rents increased 0.1 percent in April but fell by 0.2 percent over the 12 months to April, according to CoreLogic RP Data. 

Rents in Sydney increased 1.4 percent, Melbourne 1.7 percent, Adelaide 0.5 percent, Hobart 1.1 percent and Canberra 2.5 percent however large falls in Perth and Darwin, 8.9 percent and 12.6 percent respectively pulled down the combined capital figure.

CoreLogic RP Data's April Rental Index said rental rates across the combined capital cities are recorded at $486 per week and they are 0.2 percent lower than they were a year ago.

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"CoreLogic have been tracking annual rental changes since 1996, with the annual change in capital city rents now tracking at the lowest level on record.

"At the same time last year rental rates had increased by 1.7 percent which indicates that the slowdown in rental growth has been sharp over the past year. Factors contributing to the slowdown in rental growth include falling real wages, excess rental supply in certain areas and lower rates of population growth which have impacted on demand for rental accommodation.

"With dwelling approvals having peaked at record highs and construction activity set to peak over the next 24 months accompanied by many new properties still to settle, it is anticipated that the weak rental market conditions will persist with rental growth continuing to slow and/or fall in most capital cities. Landlords will continue to have little to no scope to lift rental rates and may actually need to reduce rents in order to keep their tenants. Renters hold a stronger negotiation position and have the potential to upgrade into a higher grade of accommodation for a similar or potentially lower rental cost."

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