Powered by MOMENTUM MEDIA
realestatebusiness logo
Subscribe to our newsletter SIGN UP

Rental yields hit record lows in two capitals

09 October 2015 Reporter

Rental yields have fallen across much of the country, with many capitals experiencing “weak rental conditions”, according to CoreLogic RP Data.

Rental yields have fallen across much of the country, with many capitals experiencing “weak rental conditions”, according to CoreLogic RP Data.

New research has found that Melbourne has the lowest gross yields in Australia.

Yields for houses fell from 3.3 per cent in September 2014 to 2.9 per cent in September 2015, while units fell from 4.3 per cent to 4.1 per cent over the same period.

Sydney has the second-lowest yields, after houses fell from 3.6 per cent to 3.1 per cent and units dropped from 4.5 per cent to 4.4 per cent.

In Perth, houses fell from 4.1 per cent to 3.9 per cent, while units dropped from 4.6 per cent to 4.4 per cent.

In Canberra, houses remained unchanged at 4.1 per cent and units rose from 4.8 per cent to 5.2 per cent.

Adelaide house yields remained steady at 4.2 per cent and units rose from 4.7 per cent to 5.0 per cent.

Houses in Brisbane dropped from 4.5 per cent to 4.3 per cent, while units fell from 5.5 per cent to 5.3 per cent.

Hobart was the only city to record improvement across the board, with houses climbing from 5.2 per cent to 5.3 per cent and units climbing from 5.1 per cent to 5.2 per cent.

Houses in Darwin dropped from 5.9 per cent to 5.4 per cent and units fell from 6.0 per cent to 5.8 per cent.

Gross rental yields for houses across the combined capitals dropped from 3.7 per cent to 3.4 per cent, while units fell from 4.5 per cent to 4.3 per cent.

CoreLogic RP Data head of research Tim Lawless said gross rental yields have hit record lows in Sydney and Melbourne.

“We’re also seeing relatively weak rental conditions across the other capital cities. However, capital gains haven’t been high enough to push gross rental yields substantially lower,” he said.

[Related: Australia’s 6 highest-yielding suburbs revealed]

 

Rental yields hit record lows in two capitals
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

Network or independent?

Independent
Network, the bigger the better
Network, but midsized
Niche group, small and agile
Do you have an industry update?
REAL ESTATE BUSINESS 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.