Australian capital city house prices have been growing for the past four and a half years but rental returns have fallen to a fresh record low, intensifying pressure on the national property market.
Fresh Record Lows.........
Quote:
However, rental yields are now coming under pressure despite the ongoing sales price growth.
The average capital city rental yield was 3.2 per cent in November, down from 3.5 per cent one year ago and 4.1 per cent five years ago.
“With rental markets remaining soft, it’s likely there’ll be further yield compression across those markets where residential property values are rising,” Mr Lawless said.
“It appears as though the low yield profile is not a deterrent to investors, with housing finance data showing a consistent rise in finance commitments for investment purposes since May this year.
“Clearly investors are continuing to see housing as the preferred investment option, despite low yields and a mature growth cycle.”
Yield Compression.......Foxbat will love that one!
According to the latest CoreLogic rental index, rents across Australia’s capital cities fell by 0.3% in July, leaving the decline from a year earlier at 0.6%. The year-on-year drop is the steepest recorded since the survey first began in 1996.
Renters are enjoying more affordable options and greater negotiating power in several capital cities, with rent prices on the way down and construction on the way up.
Despite the fall in rents across the combined capital cities, not all are seeing decreases. Not only have rents gone up in Hobart (up 6.8%), Melbourne (2.9%) and Canberra (2.6%) over the past year, but they’ve also increased at a faster rate in those cities than the previous 12 months.
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while average Sydney rents stayed unchanged.
From your own link.
Do you read the shit you post links to, or do you just not understand what the article is saying?
My only hope for my three boys is that they turn out nothing at all like Chris.
Do you read the shit you post links to, or do you just not understand what the article is saying?
Oh you seem to have left this part out.....
Quote:
On the other hand, Darwin (-14.1%) and Perth (-9.4%)recorded sharp rental decreases in the last year, dragging the average amongst the capitals down. Brisbane (-1.1%) and Adelaide (-0.3%) also saw decreases, while average Sydney rents stayed unchanged.
Your link claimed "Property Rents down across the Country".
I simply pointed out your link was wrong, and that you clearly either didn't read it, or didn't understand it.
Given you are a moron, I am guessing you cannot read and therefore couldn't understand.
Back peddling now?
You definitively said that Rents were Rising:
Quote:
But rents are rising.
Well........
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Cameron Kusher, research analyst at Core Logic, believes we’re unlikely to see an overall increase in rental prices any time soon.
“As long as wages growth continues to stagnate, coupled with historically high levels of new dwelling construction and slowing population growth, landlords won’t have much scope to increase rents,” he says.
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