- Weekly average rents across Australia grew 0.3% last quarter, below the 0.7% increase during the same period in 2017.
- Average national rents grew by 1.8% to $429 over the past year. Rents in regional areas grew by 3.1%, more than double the 1.4% increase in the capitals.
- Rental rates grew in most capitals over the past year, led by strong growth in Hobart and Canberra.
The cost to rent a home in Australia is increasing, albeit not as fast as was the case this time last year.
According to CoreLogic’s Quarterly Rental Review, the average rent nationally rose 0.3% to $429 in the June quarter (all figures per week), leaving the increase on a year earlier at 1.8%.
The quarterly change was less than half the 0.7% increase recorded during the same period a year ago.
CoreLogic said average capital city rent rose by 0.3% in the three months to June, outpaced by a 0.4% increase in regional markets over the same period.
Those trends were also seen over the year with the average capital city rent lifting by 1.4%, less than half the 3.1% increase in regional areas.
Cameron Kusher, Research Analyst at CoreLogic, said the divergence partially reflects an increase in housing supply in capital cities, especially in the eastern capitals.
“The first two quarters of 2018 have seen softer rental growth than the same two quarters of last year highlighting the slowing rental growth across the nation,” he said.
“With rental stock continuing to rise as off-the-plan unit settlements continue, it is anticipated that the softening rental growth will continue over the coming months.”
Average rental rates for houses nationally increased by 1.9% over the year, faster than the 1.7% lift for units over the same period.
Interestingly, the national rent for units is higher than for houses, sitting at $434 and $427 respectively.
By individual capital, rents climbed in all capital cities aside from Darwin and Sydney during the June quarter.
Hobart, currently the hottest capital city market in terms of price growth, also registered the largest increase in rental rates, jumping by 1.9%. Canberra, at 1.3%, also registered a hefty increase during the quarter.
As seen in the table below, Hobart also topped the list for rent increases over the past year, soaring by a massive 10.7%.
Gains in other capitals ranged from 4.5% in Canberra to just 0.1% in Sydney. Darwin, at 1.7%, was the only capital to register a fall in average rents over the year. Darwin’s median home price has also fallen the most of any capital over the past 12 months.
By dollar value, and despite lagging the increase in the national average over the past year, Sydney remains the capital with the highest average rent across the country at $583.
It was followed by Canberra and Darwin at $536 and $464 respectively. Adelaide, at $375, is the cheapest capital city to rent, marginally edging out Perth at $377.
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