Rental rates across the nation were down by 0.1% in December and were logged at a median value of $433 per week. Rents across the combined capital cities, meanwhile, dropped 0.2% to $462 per week over the same period, according to CoreLogic’s Quarterly Rental Review. These annual changes in both combined capital city and national rents are at a rock-bottom level relative to the available data since 2005.
The combined regional markets bucked the negative results, up by 0.2% to sit at $373 per week.
The report also found that trends for the capitals differ. Rents are falling in Sydney, Darwin and Canberra. Melbourne is experiencing a significant slowdown in the rates, while others are recording growth, but on a slower pace compared to the previous year.
Brisbane and Perth are two of the cities whose rental markets are tracking upwards. Sydney remains the most expensive capital city in Australia to rent a home, with a median rent of $583 per week.
Hobart has been the most affordable capital city rental market, but strong rises in rents over recent years have caused rental costs to climb well above those in Adelaide and Perth. Hobart’s rents are also now marginally higher than rents in Brisbane.
“Sydney and Melbourne are both seeing the impact of significant demand from investors over recent years, along with a substantial ramp-up in new housing supply (largely apartment), much of which was purchased by investors. Darwin rents have been falling for many years and they continue to decline,” said Cameron Kusher, CoreLogic research analyst.
