Rental markets see ‘sluggish’ September

Rental rates across the combined capital cities came in -0.2 per cent lower over the month with a weekly median rental value of $464 per week, the CoreLogic research noted. By comparison, the combined regional markets is seeing median rental values of $381 per week, with rents across regional areas having risen by 0.1 per cent over the month of September 2019.

“The broad-based weakness in rental conditions can probably be attributed to a rise in rental supply following the surge in investment and residential construction activity through the previous housing boom which has contributed to rental supply. Additionally, as first home buyer numbers have surged, this has likely contributed to a reduction in demand as renters convert to buyer,” according to CoreLogic’s head of research, Tim Lawless.

“Markets where rents are rising the fastest have generally seen less of a supply response, creating tight rental conditions and pushing rents higher.”

Capital city breakdown

Adelaide

Increase in rents by 0.1 per cent

Sydney

Decrease in rents by -0.3 per cent

Melbourne

Decrease in rents by -0.1 per cent

Perth

Decrease in rents by -0.1 per cent

Hobart

Decrease in rents by -0.2 per cent

Darwin

Decrease in rents by -0.2 per cent

Canberra

Decrease in rents by -0.3 per cent

Brisbane

Unchanged