Rental growth increased by less than the inflation rate last year, highlighting just how favourable conditions are for tenants right now.
New figures from CoreLogic RP Data revealed that Australia’s median rental price increased 0.3 per cent in 2015.
CoreLogic RP Data research analyst Cameron Kusher said the rental market has never been as sluggish as it is currently.
“Furthermore, we’re expecting to see more of the same over the coming months due to increases in the supply of new housing, rental stock and a further slowdown in migration rates,” he said.
In Melbourne, the median house rent climbed 2.3 per cent from December 2014 to December 2015 to reach $458, while the median unit rent rose 2.1 per cent to $405.
In Canberra, houses rose 1.9 per cent over the same period to $507 and units climbed 2.1 per cent to $408.
Sydney houses rose 1.6 per cent to $612 and units jumped 3.4 per cent to $542.
In Hobart, houses climbed 0.3 per cent to $343 and units rose 3.7 per cent to $301.
Brisbane houses fell 0.2 per cent to $434 and units dropped 0.8 per cent to $408.
In Adelaide, houses fell 0.2 per cent to $370 and units dipped 0.9 per cent to $314.
Perth houses fell 7.9 per cent to $449 and units dropped 9.0 per cent to $402.
Darwin houses dropped 13.5 per cent to $535 and units fell 12.6 per cent to $426.
Across the combined capital cities, house rents remained unchanged at $486, while units rose 1.8 per cent to $464.
Mr Kusher said a continuing increase of investment stock leaves little scope for landlords to increase rental rates, while low mortgage rates provides little incentive to push yields higher.
“We envisage that growth in rental rates is likely to remain weak or potentially slow even further over the coming months,” he said.
“The large pipeline of residential construction activity and recent high levels of investment demand means that renters are likely to continue to have plenty of choice.”
[Related: Rents growing at slowest pace on record]