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Stats show rental market favours tenants

Stats show rental market favours tenants

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It’s a challenging time for property investors, with rental yields and rates hitting record lows in some cities.

New figures from CoreLogic RP Data highlight that rental yields have dipped throughout the country, while rental rates recorded losses or modest growth across most capitals.

Melbourne recorded the country’s lowest rental yields, which fell from 3.3 per cent in March 2015 to 3.1 per cent in March 2016, while the rental rate jumped 2 per cent to $455.

In Sydney, rental yields dropped from 3.6 per cent to 3.4 per cent over the same period, while weekly rents rose 1.4 per cent to $601.

Perth’s rental yields dipped from 4.1 per cent to 3.8 per cent, while the rental rate fell 8.4 per cent to $441.

Adelaide’s rental yields dropped from 4.3 per cent to 4.1 per cent, while the city’s weekly rents dipped 1 per cent to $364.

In Canberra, rental yields fell from 4.2 per cent to 4.1 per cent, while rental rates climbed 1.2 per cent to $499.

Brisbane’s rental yields fell from 4.6 per cent to 4.3 per cent, while weekly rents fell 0.7 per cent to $431.

In Hobart, rental yields fell from 5.3 per cent to 5.1 per cent, while the rental rate rose 0.3 per cent to $342.

Darwin’s rental yields dropped from 5.8 per cent to 5.2 per cent, while the city’s weekly rents dropped 11.5 per cent to $511.

Across the nation’s capital cities, rental yields dipped from 3.7 per cent to 3.5 per cent, while the rental rate dipped 0.2 per cent to $486.

CoreLogic RP Data research analyst Cameron Kusher said the current building boom and record high levels of investment purchasing continue to increase supply levels, while population and wage growth are slowing.

“With dwelling approvals recently at record highs, construction activity set to peak over the next 24 months and many new properties still to settle, the rental demand weakness is expected to persist,” he said.

“In all probability, there won’t be much scope for landlords to lift rental rates, given current conditions have given greater negotiation opportunities to those in rental situations.”

[Related: Rents of the rise while yields dip]

 

Stats show rental market favours tenants
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