Rental market result brings mixed news
Rental market result brings mixed news
Posted on Thursday, January 16 2014 at 4:28 PM
One market analyst says the market for rental properties is shifting back into balance, bringing mixed news for tenants and landlords.
Australian
Property Monitors (APM) has released figures indicating national asking rents for houses increased by 0.9 per cent, while unit rents fell
by 0.4 per cent during the December quarter in 2013.
The APM numbers show Brisbane, Hobart, Darwin
and Adelaide all saw growth in both house and unit rents during the period.
The report confirms Sydney as the most expensive
capital city for tenants with unit rental rates increasing by 5.4 per cent
during 2013.
Sydney’s median weekly asking rent was $500 for houses
and $485 for units.
Melbourne’s overall result was subdued for the
period, according to Andrew Wilson, a senior economist at APM.
“Melbourne’s recent trend of rising house rents
is also consolidating, with December quarter median asking rents increasing by
1.4 per cent.”
Wilson says an increase in the supply of new
inner city apartments is contributing to weaker unit rental growth in the Victorian
capital.
Adelaide is the most affordable mainland capital
with a current median weekly asking rent of $350 for houses and $285 for units.
Wilson says Melbourne and Sydney are delivering
the lowest yields for both houses and units.
“Rental yields for
houses in Sydney continues to weaken as a result of strong price rises and a
surge in investor activity.
“This year, we can
expect to see rising supply and moderating demand put further downward pressure
on house rental growth in the city.”
In contrast, Brisbane
and Perth are providing investors with the highest yields for most housing.
Wilson is particularly bullish about the result
for the Queensland capital.
“Brisbane continues to provide investors with
the highest gross yields for both houses and units of all the major capitals.
“With prices growth likely to accelerate this
year, expect increased house investor activity.”
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