It’s just that stage of the property cycle – property prices are going up, but rents are not.
The latest CoreLogic rental report shows that over the 2014 calendar year, advertised rental rates on a national basis increased by 2.6 per cent for both houses and units.
At a capital city level, the rental performance across the different housing stocks was more varied.
House rents rose by 1.2 per cent over the year, while unit rents outperformed the detached housing market, up 2.5 per cent over the 12 months to December 2014.
Houses – Performance in the December Quarter Variable
Rental growth was poor overall over the last 3 months and varied from state to state.
- Hobart house rents rose by the most, up 5.4 per cent over the three month period;
- Brisbane 2.5 per cent;
- Adelaide 1.4 per cent;
- Canberra 1.1 per cent;
- Sydney 1.0 per cent;
- Perth -2.2 per cent & Darwin -0.8 per cent the weakest performing rental markets for houses over the three month period;
- Melbourne was the only capital city market to record no change, with weekly rents for houses stable at $385 per week.
Units – Performance = Somewhat weaker in the last 3 months
Rental growth for apartments was even weaker than house rental growth in the last quarter
- Hobart 1.8 per cent & Brisbane 1.3 per cent, were the only capital cities where rents rose over the three months to December;
- Remaining capital cities saw rents fall over the last quarter of 2014 with the exception of Adelaide and Canberra where no change was recorded.
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