Rental growth across many parts of the nation is slowing new research has found.
Data from the Weekly Rents Index by SQM Research has shown that on a national level, owners of investment properties have steadily increased their rental asking prices in some capital cities over the past 12 months.
“Our new rents index provides a contrasting insight into the Australian rental market,” Louis Christopher, managing director of SQM Research said.
“On one hand there is Perth and Darwin recording very solid rental increases right across the localities of both cities. And then on another, we note what seems to be a slowdown taking place in the Sydney rental market.”
According to Mr Christopher, data collected from Melbourne shows that there are many submarkets performing at different rates.
“And then there is Melbourne where, within that city, there are clear pockets of oversupply of rental property and pockets of undersupply,” he said.
“This illustrated by far that there are markets within markets. Going forward, local conditions are set to dominate rental conditions for 2013, with no really large influence from the macro-economic tides other than a slow-to-moderate movement of renters turning themselves into first home buyers.”
Although rental growth is slow, landlords continue to wield control of the rental market, SQM Research has said.
According to SQM Research, the decreasing of rental asking prices has been slower in comparison to rises experienced in 2010 and early 2011, with the capital city average asking prices increasing 0.1 per cent year-on-year for houses and 2.1 per cent for units, compared to the 12.3 per cent for houses and 10.3 per cent for units over the past three years.