Rents fall in Perth and Canberra - RP Data September Quarter Rental Review; Melbourne +2.6, Darwin +1.5%, Hobart +1.5%, Adelaide +1.4, Sydney +1.0%, Perth -2.7%, Canberra -2%
Tweet Topic Started: 16 Oct 2014, 10:05 PM (4,073 Views)
The release today of the RP Data September 2014 Quarter Rental Review scorecard provides a thorough analysis of rental market activity over the period. Nationally, the annual rental rate for houses and units increased by 1.3 per cent while in the capital cities, house rents remained flat at 0% growth; rental rates for units increased by 2.4 per cent.
According to RP Data national research director Tim Lawless, investors entering the rental market need to be aware that rents aren't rising anywhere near the pace of capital gains which is pushing rental yields lower, particularly in Sydney and Melbourne where values have increased the most at a time when rents aren't doing comparatively much at all.
Highlights:
For houses, Darwin currently holds the highest weekly median rental rate at $660 followed by Sydney $525, Canberra $480, Perth $462, Brisbane $400, Adelaide $350, Melbourne $390 and Hobart at $330.
For units, Darwin once again emerged as the most expensive market on the rental rate front by recording the highest weekly median rental rate for the quarter at $550 followed by Sydney $500, Perth $450, Brisbane $390, Canberra $383, Melbourne $370, Adelaide $300 and Hobart $275.
RP Data’s Tim Lawless noted that while detached house rents remained unchanged across the combined capital cities over the quarter, this cannot be said for each individual city. Brisbane is only city where rents remained unchanged. Melbourne (2.6 per cent), Darwin and Hobart (both 1.5 per cent), Adelaide (1.4 per cent) and Sydney (1.0 per cent) all recorded a rise in rents, while Perth (-2.7 per cent) and Canberra (-2.0 per cent) recorded a fall in rents.
RP Data analysts reported that over the third quarter of 2014 capital city rental rates for both houses and units remained unchanged. Across the combined capital cities, rental rates for houses were recorded at $430 per week, while median weekly rental rates remained at $420 for units. On a national level house rents also remained steady over the three months to September at $400 per week, while for units, rents fell by -1.3 per cent, down $5 over the quarter to $390 per week.
Across the unit market, none of the capital cities recorded a rise in rents over the September quarter and the majority of cities saw rents remain steady over the three months. Canberra rents fell by -3.2 per cent to $383 per week and Hobart rents fell by -1.8 per cent to $275 per cent.
Mr Lawless said, “the performance of rental markets are diverse, however the common theme is that generally the rate of capital gain is outpacing the change in weekly rents which is driving rental yields lower. This is happening at a time when investment demand is at record levels and trending higher, which highlights that most investors are focussing on capital gains and ignoring the low yield scenario. The softer rental conditions are likely the result of the surge in investor related activity which is seeing more rental supply hit the market.”
So rents are falling in nominal terms as well as Inflationary terms....
DOH....
All part of the cycle no doubt.
Was all mentioned in a thread here back in july by one of our residential forum experts.
'An historical event about to take palace in Australia', was the thread from memory. It explained how rents in all capitals had now peaked, and would decline for many years as debt levels and jobs losses would be unable to support or sustain them moving forward, and for this reason, they will fall.
Our residential expert also discussed this back in 2012, and explained how it would happen. Mentioning at the time, that they will all fall including Sydney, and mentioned at the time that it may be one or two years before this happens. Its now two years since this and appears it is now happening. And when discussed and explained back then, there was not all this record building going on in every capital city like there is now.
Our residential expert also discussed this back in 2012, and explained how it would happen. Mentioning at the time, that they will all fall including Sydney
But this article says they're all rising except Perth & Canberra, which together is less than 10% of Oz population, so...... rents are still rising for more than 90% of people, so the residential expert got it wrong again? Quarterly up in Melbourne +2.6, Darwin +1.5%, Hobart +1.5%, Adelaide +1.4, Sydney +1.0%
But this article says they're all rising except Perth & Canberra, which together is less than 10% of Oz population, so...... rents are still rising for more than 90% of people, so the residential expert got it wrong again? Quarterly up in Melbourne +2.6, Darwin +1.5%, Hobart +1.5%, Adelaide +1.4, Sydney +1.0%
No, they are falling, look on oldlistings.com
These are just vested interests talking it up.
Plenty of old stats to checkout.
Right again.
Care to list your town,city or suburb ?
Those quarterly rises you quoted are all bullshit.
Im off to bed now, but theres plenty for many to see when we show you actual properties, with there past rent and current.
Take your pick, perth or canberra, how about Sydneys eastern suburbs, or shadows northern beaches.
Those quarterly rises you quoted are all bullshit.
Oh, sorry, when you replied to the thread saying 'so rents are falling in nominal terms' I thought you were referring to the data in the thread. You've got other data showing rents falling in the majority of places around Oz? Or do you only have cherry picked examples of rents falling in certain suburbs?
Oh, sorry, when you replied to the thread saying 'so rents are falling in nominal terms' I thought you were referring to the data in the thread. You've got other data showing rents falling in the majority of places around Oz? Or do you only have cherry picked examples of rents falling in certain suburbs?
So you don't consider 8% drops in Perth and Canberra a drop in nominal terms and the others ,where yoy increases are less than inflation over the year a drop in inflation adjusted terms ?
And yes I can show you massive drops in ANY capital, perhaps apart from darwin for which I have not looked at closely and know it has been strong over the years and commands higher rents than Sydney. So apart from that, no problems.
I can also tell you right now, that TOP end rents in Sydney,weather it be Sydneys eastern suburbs or Sydneys northern beaches ,have been falling since the gfc first hit in 2008 . Did you wish to disagree with this ?
I am busy for a while, but will look back in later.
Perhaps while I am busy, some of my bear mates will be only to happy to find some example for you.
So you don't consider 8% drops in Perth and Canberra a drop in nominal terms and the others ,where yoy increases are less than inflation over the year a drop in inflation adjusted terms ?
Dunno where you get 8% from, Perth and Canberra -3.8% and -4% YOY.
Sydney +5% and Melbourne +4% YOY, that's above inflation for the 2 biggest cities.
Quote:
dover heights Vaucluse Rose bay clontarf
Yeah, not really interested in cherry picked suburbs. What about the other 700 suburbs in Sydney? Prove rents are falling in the majority of them. Good luck with that when rents are +5% YOY across Sydney.
Dunno where you get 8% from, Perth and Canberra -3.8% and -4% YOY.
Sydney +5% and Melbourne +4% YOY, that's above inflation for the 2 biggest cities.
Yeah, not really interested in cherry picked suburbs. What about the other 700 suburbs in Sydney? Prove rents are falling in the majority of them. Good luck with that when rents are +5% YOY across Sydney.
Crazy Dave/Ted also looks at ASKING rent changes in his cherrypicked examples, not actual achieved rent changes. Apples and oranges of course... but when you only have a double digit IQ it can be hard to get your head around the nuances of this type of data.
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