The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Interested in a Corporate TUD+ Membership? Access premium content, site tours, event discounts and networking opportunities
Interested in a Corporate Membership? Access exclusive member benefits today
Enquire NowEnquire
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialSun 04 Feb 18

Rental Price Growth at 25-Year Low

efa0626c-0f0c-4f0c-868e-47f0e216f231

Australia’s rental market is an important driver of activity in the residential construction market, and national rental price growth is at its lowest in 24 years.

Figures from the ABS Consumer Price Index were recently released for the December 2017 quarter, and revealed that the pace of rental price growth dipped to just 0.6 per cent in 2017.

According to HIA senior economist Shane Garrett, such a slow pace of growth has not been seen since 1993.

“For families reliant on the rental market, the deceleration in rents is welcome news,” he said.

“The slowdown in rental price pressures has been helped by the completion of large volumes of newly-built dwellings over the last couple of years.

Related reading: Building Approvals Fall 20% in December

“Investors, both domestic and foreign, have been instrumental in delivering this additional supply.”

The ABS’ rental market analysis has been a useful tool in Australia to measure activity in the residential construction market, and the scope of rental costs that will influence the decision to build or purchase.

Rental incomes act as a crucial determinant of investor activity, with higher rental returns providing higher incentives for investors to participate in the market.

The overall rate of inflation rose to 1.9 per cent during the December 2017 quarter, while the increase in general housing costs grew by 3.4 per cent over the year.

“This is predominantly due to rising electricity costs which rose by 12.4 per cent over the past 12 months,” Garrett said.

“Several countries’ central banks have started to lift their key interest rates.

“Taken with today’s inflation data for Australia and the fact that our labour market is tightening, we expect that the RBA’s next rate move will be upwards.”

ResidentialAustraliaSector
ADVERTISEMENT
TOP STORIES
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
Fraser and Partners founder Callum Fraser
Exclusive

Saving Our CBDs: Architect’s Blueprint Paves Way for Office-to-Resi that Works

Leon Della Bosca
8 Min
Exclusive

Watchdog’s Court Loss Throws Spotlight on Union Balancing Act

Clare Burnett
6 Min
Time and Place's The Queensbridge Building at 90 Queens Bridge Street in Melbourne's Southbank.
Exclusive

Innovation Keeps Time & Place’s Southbank Skyscraper Rising

Marisa Wikramanayake
6 Min
Breathe Architecture founder Jeremy McLeod in front of his Featherweight Home design
Exclusive

Nightingale Founder’s Bid for Affordable Architectural Kit Homes

Leon Della Bosca
7 Min
View All >
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
PBSA DA Hindmarsh Square student accomodation tower
Student Housing

Student-Friendly Adelaide Draws 35-Storey PBSA Proposal

Renee McKeown
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
Data, 3D tech and careful research are vital, but count for little without the courage to back it up, says James Maitlan…
LATEST
West End Stockwell Vulture Street DA hero
Development

Stockwell Files Tower Plans in West End Stomping Ground

Phil Bartsch
3 Min
PBSA DA Hindmarsh Square student accomodation tower
Student Housing

Student-Friendly Adelaide Draws 35-Storey PBSA Proposal

Renee McKeown
3 Min
Exclusive

Brains, Guts and Determination: How Salvo Property Shapes Melbourne’s Skyline

Marisa Wikramanayake
5 Min
Westmead Gene Technologies Building EDM
Life Sciences

Plans for $272m Parramatta Biomedical Facility Go Public

Clare Burnett
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/rental-price-growth-at-25-year-low