Weekly rents are at their most stable in 13 years, the result of a “substantial” ramp-up of supply in recent years, new data has found.
Weekly rents declined by a mere 0.1 of a percentage point across Australia to the median of $433 per week, according to Corelogic’s December 2018 Quarterly Rental Review.
The combined capital cities experienced a decline of 0.2 of a percentage point to $462 per week, while combined regionals rose by 0.2 of a percentage point to $373 per week.
The national and combined capital city rent movement is the lowest movement ever since data began being collected from back in 2005.
Across the capitals, Sydney experienced the largest decline at 0.7 of a percentage point to a median of $583 per week, followed by Darwin with 0.6 of a percentage point down to $463 per week and then Canberra with 0.2 of a percentage point down to $539 per week.
Meanwhile, Hobart saw the largest weekly rent rise, rising by 0.7 of a percentage point to a median of $433 per week, followed by Perth with 0.3 of a percentage point up to $378 per week, Brisbane with 0.2 of a percentage point up to $432 per week and then Adelaide with 0.1 of a percentage point up to $381 per week.
Melbourne remained steady and maintained its median weekly rent of $451 per week.
Sydney and Melbourne’s situation, CoreLogic research analyst Cameron Kusher said, was due to investor demand.
“Sydney and Melbourne are both seeing the impact of significant demand from investors over recent years, along with a substantial ramp-up in new housing supply (largely apartment), much of which was purchased by investors,” Mr Kusher said.
“Darwin rents have been falling for many years and they continue to decline.”