Rental returns on capital cities revealed

This is the highest increase in rental income since January 2018, signalling the lowering of new stock available is favouring investors.

The CoreLogic hedonic rental index has seen an upswing in values since September 2019, which follows the start of the upswing in purchase prices in June the same year, and decline of new dwelling construction in most capital cities.

The report found Sydney remains Australia’s most expensive city to live in, with the median dwelling rental value in January 2020 being $574 per week.

However, this is lower than a year ago when the median cost to renters was $582 per week.

Median rents in Canberra came in second, falling just $18 per week below Sydney, with Hobart coming in third place with median rental returns of $470 per week.

Australia’s second largest city, Melbourne, showed rental returns of $458 per week, while Brisbane will return investors $440 per week.

Australia’s cheapest city to rent in is Perth, with a median cost of $390 per week, with Adelaide being $3 more a week.