Australian rental growth slow to record crawl

Photo credit: 8LettersUK

Rental growth in Australia's capital cities has slowed to a record crawl, providing much needed relief for tenants.

Monthly analysis from CoreLogic RP Data shows that rental rates across the combined capital cities fell by 0.2 per cent in June 2015, taking the annual rate of growth to a new low.

Rental rates are recorded at $487 per week, up 1.1 per cent over the past 12 months. This rise is the slowest rate of growth on CoreLogic RP Data records, which date back to December 1995.

Research analyst Cameron Kusher attributes the slowdown to the ongoing boom in dwelling construction across Australia’s capital cities, accompanied by record high participation in the housing market from investors. Indeed, both foreign and domestic investors are driving a large proportion of inner city development.

Sydney and Hobart have recorded the greatest increases in weekly rents. Along with Melbourne and Canberra, Sydney is the only city to see rents higher over the past three months.

Sydney and Hobart recorded the greatest annual increases in weekly rents while rents in Perth, Darwin & Canberra continue to decline.