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ISCOVER
Staff Reporter
While property prices continue to fall, rental rates have managed to increase slightly, with unit rental prices rising 0.3 per cent last quarter.
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According to Australian Property Monitor’s Rental Price Series Quarterly Report, Australia’s capital city managed to record a rise in both house and unit rental prices in the quarter, and is now the third most expensive rental market in the country with the median weekly asking rent for houses sitting at $475 and $435 for units.
Sydney and Darwin also recorded increases in median asking rents for houses in the June quarter, though both cities recorded flat growth in units.
Brisbane saw the strongest increase of any capitals in median asking rent for units, rising 2.9 per cent to $360, which may reflect increased competition for properties as a consequence of the reconstruction initiative.
“Despite signs earlier this year pointing to a tough time ahead for renters, the reduction in buyer activity – particularly from first home buyers, has not resulted in a significant increase in rental prices,” Australian Property Monitors senior economist Andrew Wilson said.
“It also appears landlords may have taken a conservative attitude to rental increases in the second quarter of the year as concerns over household cost of living, notably utility costs, continue to linger.
“The good news for renters is the flat growth in rental prices will continue in most capital cities, as an expected increase in buyer activity will take the pressure off the rental market by decreasing competition for available rental properties and motivating investors to re-enter the market.
“With interest rates on hold and house prices stable in a generally strong economy, there are positive indications for an increasingly accessible rental market in most cities.”
