Ensure you never miss an issue of the
real estate business bulletin
Rental growth at lowest rate in more than a decade

Rental growth at lowest rate in more than a decade

by Staff Reporter 0 comments

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.

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
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?