The Melbourne housing market finished the month as having the lowest rental yield in houses. with a gross rental yields of 2.9%.
Melbourne’s housing market is still recording the highest annual rate of capital gain at 13.9%.
The largest capital gains over the cycle to date have been in Sydney where dwelling values are 57.5% higher followed by Melbourne with a 39.4% capital gain since values started rising.
A rise of more than 1% month-on-month was also recorded in Melbourne. (1.6%)
Auction clearance rates across the combined capital cities have remained stable and hovered around the high 60% to low 70% range since February this year.
Melbourne clearance rates now sit in the early 70% range.
The March data shows investors now comprise of 47.6% of all new mortgage commitments which is the highest proportional reading since August last year.
The effect of strong capital gains with little rental movement is a further compression of gross rental yields which fell to a new record low during May.