New data from Domain shows that rental prices are starting to flatline across Australia, with only a few cases of growth.
The Domain Rental Report for the June quarter showed that only Canberra and Hobart had seen growth in rents for houses and units, respectively.
Domain data scientist Nicola Powell said that the June quarter was typically a slower time period for all markets, after a strong first quarter.
“This slowdown is a trend we typically see in the June quarter following a strong start to the year. As supply continues to track higher, we may see investor activity shift to new markets beyond the eastern seaboard in search for better yield and future growth potential,” Ms Powell said.
Sydney experienced no growth for either houses or units but maintained the highest weekly median price out of the capital cities.
“In Sydney, rental growth slowed, likely due to a rise in construction completions resulting in an increase in the availability of rental stock on the market,” Ms Powell said.
Weekly house rents in Melbourne remained flat for the quarter, at $430 a week, as did unit rents, at $410 a week.
However, over the past year, both markets have experienced an annual increase of 2.4 per cent for houses and 2.5 per cent for units.
Brisbane house rentals remained stable over the quarter at $400, whereas units took a slight decrease of 1.3 per cent to be at $370 a week.
“Even though house and unit rental stock remain elevated at near record highs following a number of years of rising supply, conditions appear to be changing downwards, slipping to the lowest level in two years,” Ms Powell said.
Canberra was the winner of the quarter as house rents reached a record high after a 3.8 per cent jump to be on par with Sydney at $550 per week.
Canberra’s units remained stable, holding at the high achieved last quarter of $450 per week but annually had the second highest growth with a 7.1 per cent increase.
Adelaide remained one of the most affordable cities after no growth in the quarter, with houses holding at $375 and units at $300.
Perth remained the lowest of the capital cities with a 1.4 per cent decrease to $350 for houses and a stable unit market at $300, making it the fifth consecutive quarter of flat price movement in the city.
Hobart rentals fell over the quarter by 6.5 per cent for houses and 2.4 per cent for units, which represents the highest drop of unit prices across the capital cities.