Ensure you never miss an issue of the
real estate business bulletin
Quarter breakdown shows stalled market

Quarter breakdown shows stalled market

by Reporter 0 comments

Housing market sentiment has weakened across the country in the June quarter as house prices and rents have slowed, according to the latest report from NAB.

The Quarterly Australian Residential Property Survey found that national rental growth had stalled in the second quarter of this year, rising by just 0.1 per cent, compared to one per cent in the first quarter.

Estimates for rental growth were scaled back in all states. Western Australia stood out for income growth in the second quarter, despite rents growing by just 0.8 per cent, compared to 2.4 per cent in the last quarter.

Rents fell by 0.5 per cent in South Australia, reflecting the weaker local economy and were also down 0.2 per cent in New South Wales. In Victoria, rents grew by just 0.2 per cent.

NAB’s rental expectations in all states for the next year were scaled back from 2.6 per cent to 1.5 per cent, although Victoria remained mostly unchanged at 1.5 per cent.

In WA, rental growth was predicted to soften to from 4.2 per cent to two per cent. Expectations were also lowered to 1.5 per cent in SA and the NT. NSW had the weakest rental expectations for next year at 1.3 per cent.

“With the Australian economy slowing and labour market pressures growing, national rental returns are forecast to slow to 2.6 per cent in the next two years,” the report said.

“Returns are expected to be highest in WA (three per cent) with yields of around 2.5 per cent forecast in all markets.”

NAB’s report disputes recent figures released by SQM Research, showing that residential property rental vacancies had increased for four consecutive months up to May this year.

NAB surveyed 300 property market professionals, including real estate agents, property owners and developers.

Quarter breakdown shows stalled market
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?