By Robert Kirk
According to analysis from CoreLogic RP Data, rental rates across the combined capital cities increased by 0.1% in April and continue to rise at their slowest annual pace in more than a decade. Across the combined capital cities, rental rates are recorded at $487 per week and they have risen by 0.1% over the month, 0.7% over the past three months and by 1.7% over the past 12 months.
Although rental rates are still increasing, they are doing so at a moderate rate. In fact, the annual rate of growth has been recorded at 1.7% for four consecutive months and hasn’t previously been this low since June 2003.
The slow pace of rental appreciation can likely be attributed to the booming level of dwelling construction coupled with high levels of buying activity from the investment segment which is adding additional rental stock to the market and curtailing rental increases.
Looking across the capital cities, over the past year Sydney and Hobart have recorded the greatest increases in weekly rents. Rents have fallen over the past three months in Perth and Darwin; along with Canberra these cities have recorded rental falls over the year, down -4.2%, -4.7% and -2.6% respectively.
Download the report in pdf here.
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