Rents across the combined capital cities have increased by only 1.7 per cent in the past 12 months.
According to CoreLogic RP Data, the annual rate of rental price growth has been recorded at 1.7 per cent for four consecutive years and hasn’t previously been this low since June 2003.
Across the combined capital cities, rental rates are recorded at $487 per week and have risen by 0.1 per cent over April, 0.7 per cent over the past three months, and by 1.7 per cent over the past 12 months.
Looking across the capital cities, in the past year Sydney and Hobart recorded the greatest increases in weekly rents.
Sydney rents increased 3.3 per cent to $594, while Hobart rents rose 3.2 per cent to $342.
Melbourne rental prices were up 2.3 per cent to $446, Brisbane rents increased 1.9 per cent to $435 and Adelaide rents rose by 1.2 per cent to $369.
Rents have fallen in Perth, Darwin and Canberra over the past year.
Perth recorded a drop in rental prices of 4.2 per cent to $479, Darwin decreased 4.7 per cent to $572 and Canberra rents fell 2.6 per cent to $497.
CoreLogic RP Data research analyst Cameron Kusher said the 10-year average annual rate of rental growth is higher than the current growth rate in each capital city.
Mr Kusher said the slower pace of rental growth may be attributed to factors such as :
• a ramp-up in investment purchases resulting in an increase in rental stock
• an increase in housing supply that has also added to rental stock and
• a reduction in net overseas migration decreasing demand for rental stock
“With residential construction activity continuing to increase, particularly for inner city units, we would expect that the additional housing supply may result in an even lower rate of rental growth over the coming months,” he said.
“This is likely to be most evident in the markets where the new unit supply is surging, being Melbourne and Brisbane and, to a lesser extent, Sydney.”