Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

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

rpm logo latest

Rental growth at lowest rate in more than a decade

By Staff Reporter
05 January 2015 | 1 minute read

New data reveals that Australia’s real estate market ended 2014 in sound shape, but with property prices faring better than rental yields.

Sydney’s median price for all dwellings reached $731,000 at the end of the year, after growing 2.3 per cent between October and December, according to CoreLogic RP Data.

Rental yields for Sydney houses increased by 3.6 per cent during the quarter and rose by 4.4 per cent for units.

Advertisement
Advertisement

Melbourne’s median dwelling price climbed 0.8 per cent to $587,000, with rental yields for houses up 3.3 per cent and unit yields up 4.2 per cent.

Brisbane values grew 1.8 per cent to $467,000, with house yields growing 4.4 per cent and unit yields 5.5 per cent.

Perth property prices enjoyed the fastest growth over the quarter, with values jumping 2.8 per cent to $525,000. Yields also rose 4.0 per cent for houses and 4.7 per cent for units.

The median dwelling price in Adelaide climbed 0.4 per cent to $410,000, with house yields increasing by 4.1 per cent and unit yields by 4.9 per cent.

Hobart values rose 0.3 per cent to $342,000, but there was better news for rental yields, with houses up 5.3 per cent and units up 5.5 per cent.

Rising property values in the six state capitals were accompanied by falls in the two territories.

Canberra prices fell by 3.4 per cent to $520,000 over the quarter, although house yields rose 4.2 per cent and unit yields rose 5.0 per cent.

The median price in Darwin dropped 1.7 per cent to $540,000. But there was a big rise in yields, with houses up 5.9 per cent and units up 5.8 per cent. 

CoreLogic RP Data said although dwelling values are generally still rising, rental growth is sitting at its lowest annual rate in more than a decade.

Prices are forecast to continue rising in 2015, but the rate of capital gain is expected to slow.

“Affordability hurdles in Sydney, and to a lesser extent in Melbourne, are making it increasingly difficult for some buyers to enter the market,” CoreLogic RP Data said.

“Additionally, low rental yields and the likelihood of tougher lending criteria to investment buyers will likely dampen the very active investor segment of the market, which may in turn reduce housing demand in 2015.”

 

Rental growth at lowest rate in more than a decade
Decline
lawyersweekly logo

ABOUT THE AUTHOR


Listen to other installment of the Real Estate Business Podcast
Do you have an industry update?

top suburbs

12 month growth
Queenton
69.76%
Flying Fish Point
69.61%
Point Piper
69.17%
Glenelg South
69.02%
Pretty Beach
69.01%
Bar Beach
68.9%
Northampton
68.7%
Kembla Grange
66.91%
Boomerang Beach
66.67%
Gnarabup
66.67%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.