Australia home rents falling10 September 2015 by News Desk
The cost of renting a house in Australia has fallen by 1% and across the country combined rent is increasing at its slowest on record.
Rent inflation is slowing down as the construction boom brings tens of thousands of new homes onto the market in Australia’s capital cities. And in three major cities rental costs have fallen in the past 12 months, in one case by over 10%.
Sydney, at $592 per week, remains the most expensive city in which to rent a home while Adelaide, at $365 per week, is the most affordable, according to new figures from CoreLogic RP Data.
In the three months to August rents for houses have fallen by 1% while rents for units (apartments) have increased by 0.2%.
Darrell Todd of thinkingaustralia says: “Current trends suggest that rents in some capital cities will continue to slow and fall as more new homes come into the market, while slowing population growth will fuel the downward trend.
While current trends are good for home-renters, property investors are being squeezed on two sides. While rental growth is slowing down the rise in property values is forcing rental yields lower. Across all capital cities rental yields are at record lows of 3.4% for houses and 4.3% for units.
Rental costs in Australian capital cities
Capital Rent (pw) Change (pa)
Sydney $592 +2.3%
Melbourne $447 +2.1%
Brisbane $431 +0.9%
Adelaide $365 -0.2%
Perth $462 -5.7%
Hobart $336 +1.5%
Darwin $539 -10.5%
Canberra $491 +0.7%