Login
ISCOVER
Increasing supply to the rental market has made conditions more difficult for investors as rental yields fall across the country.
New figures from CoreLogic RP Data show falling rental rates have resulted in yields dropping in the capital cities.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Melbourne recorded the lowest yields, down from 3.3 per cent in March 2015 to 3.1 per cent in March 2016.
In Sydney, rental yields dropped from 3.6 per cent to 3.4 per cent over the same period, while Perth’s yields dipped from 4.1 per cent to 3.8 per cent.
Adelaide’s rental yields decreased from 4.3 per cent to 4.1 per cent, while Canberra’s fell from 4.2 per cent to 4.1 per cent, and Brisbane’s declined from 4.6 per cent to 4.3 per cent.
In Hobart, rental yields dropped from 5.3 per cent to 5.1 per cent, while Darwin recorded the smallest decline of all the capitals – down from 5.8 per cent to 5.2 per cent.
The data showed that combined capital city rental yields dipped from 3.7 per cent to 3.5 per cent over the 12-month period.
CoreLogic RP Data research analyst Cameron Kusher said that with dwelling approvals recently at record highs, construction activity set to peak over the next 24 months and many new properties still to settle, the weakness in rental demand is expected to continue.
“In all probability, there won’t be much scope for landlords to lift rental rates given current conditions have given greater negotiation opportunities to those in rental situation,” he said.
[Related: Two capitals see sharp drop in rent prices]
