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Rental costs down under

08 March 2016 by News Desk

The cost of living in Australia has fallen over the past 12 months and is set to fall further thanks to a big drop in rental costs down under.

Rental costsRental costs down under soared in recent years due to lack of available properties. Now growing over-supply and falling population growth is forcing down the value of both sale prices and rents.

Rental costs down under – Recent huge growth in residential construction has seen rental costs down under fall by up to 30%. With thousands of new properties already in the pipeline and with another two years before the building boom is due to peak, rental costs down under are forecast to keep falling.

“This is great news for anyone seeking to live and work in Australia,” says Darrell Todd, CEO of thinkingaustralia. “The growing over-supply of properties in many capital cities is creating a buyers-market which means renters can get a better place to live for less money.”

Cause of the current slowdown in rental growth is falling wages, excess rental supply in certain areas and lower population growth, all of which has hit demand for rented accommodation, according to CoreLogic RP Data Rent Review for February, that reveals:

Rents have increased in Sydney by 1.5%, in Melbourne by 2.2% and in Canberra by 1.6%. Rents in Hobart have seen no change.

Rents have fallen in Brisbane by 0.7%, in Adelaide by 0.4%, in Perth by 8.4% and in Darwin by 13.3%.

Currently, combined capital city rental rates are $488 per week for houses and $467 per week for units.

The property slowdown is also reflected in falling house prices. Property values have already fallen in parts of Western Australia and are set to fall further in 2106.

House prices in Port Hedland, Derby and Karratha have fallen by up to 30% over the past 12 months, according to JLL’s Residential Market Review for February.

The report said Port Hedland, once a rival to Sydney for prices, has seen average house prices fall by 29% to $576,000. And prices are expected to fall further, the report says.

Prices in Derby have fallen by 29.3% to $290,000. Prices in Karratha have fallen by 21.7% to $428,000. Broome, unaffected by mining, has still seen house prices fall by 0.6% to $539,000.”

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