Rental growth puts on the breaks
Rental asking rates flat lined in most capital cities in the June quarter, with Canberra the only capital city to record a rise in both house and unit rental prices, according to figures released today by Australian Property Monitors (APM).
APM’s Rental Price Series Quarterly Report found median asking rents for houses fell by 0.2 per cent across Australian capital cities, while unit rental prices rose by 0.3 per cent in the quarter.
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“Despite signs earlier this year pointing to a tough time ahead for renters, the reduction in buyer activity – particularly from first home buyers, has not resulted in a significant increase in rental prices,” said Dr Andrew Wilson, senior economist at APM.
Canberra, now the country’s third most expensive rental market, with the median weekly asking rent for houses at $475 and $435 for units. Darwin is the country’s most expensive rental market, with median weekly asking rents for houses jumping 8 per cent from the previous quarter to $540, although unit rental asking prices remained steady at $450 over the same period.
In Sydney, median rental asking prices for homes rose by 1.0 per cent to $490 a week, while the asking rent for units remained steady on a quarterly basis at $450. In Melbourne, rental prices for houses dropped by 1.4 per cent from the March quarter to $360, with units stable over the year.
“Brisbane saw the strongest increase of any capitals in median asking rent for units, rising 2.9 per cent to $360, which may reflect increased competition for properties as a consequence of the reconstruction initiative,” APM said.
Perth recorded a modest $10 a week increase in unit rental asking prices over the previous quarter, while asking rents for houses remained steady. Adelaide saw little change in either area, with the asking rent for houses remaining at $340 and unit rental prices declining slightly to $270 from $275 the previous quarter.
“It appears landlords may have taken a conservative attitude to rental increases in the second quarter of the year as concerns over household cost of living, notably utility costs, continue to linger,” said Dr Wilson.
“The good news for renters is the flat growth in rental prices will continue in most capital cities, as an expected increase in buyer activity will take the pressure off the rental market by decreasing competition for available rental properties and motivating investors to re-enter the market,” said Dr Wilson.