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Housing


2 August 2018

AUSTRALIA: Rental growth slowing while demands steady

The rise in rent across Australia continues at 0.3% per quarter, but at a slower pace in contrast to 12 months ago, having risen 1.8% over the 12 months to June 2018.

Quarterly rents generally climbed in all capital cities, except for Sydney with a decrease of 0.3% and Darwin falling 1%. Hobart saw the highest quarterly growth at 1.9%, closely followed by 1.3% in Canberra.

Over the past 12 months, house rents have risen 1.9% and apartment rents up 1.7%. The most affected areas in Australia for rental rise and falls in this period are as follows:

  • Hobart +10.7%
  • Canberra +4.5%
  • Perth -0.2%
  • Darwin -1.7%

Over the past 10 years, national weekly rents have increased by 25.7%.

Average Rental prices

Across the capital cities, the average median rent is $462 per week (houses $464 compared to $458 for apartments).

National median rent at $429 per week (houses and apartment rents averaged $356 per week).

Which capital cities offer the cheapest average rents?

1. Adelaide at $375 per week

2. Perth at $377 per week

3. Hobart at $418 per week (despite its significant rental growth)

Rental yields

Over the past 12 months, rental yields have increased nationally by 0.6% over the last 12 months to 3.7%. Across the combined capitals, the average rental yield is 3.4%, a rise of 0.1%.

The annual rental yields for the following individual cities are as follows:

  • Melbourne 3%
  • Sydney 3.2% (+0.1%)
  • Canberra 4.6% (+0.1%)
  • Hobart 4.9%
  • Darwin 5.7% (+0.3%)

How does this affect the client? 

HR to take in consideration average rent prices to manage expectations for employees. HR to keep an eye on rental yields and give plenty of time for accommodation searches.

* Stats from latest rental tracker report from real estate firm CoreLogic

 

 

 

 

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