The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
JUST 15 DAYS UNTIL OUR FLAGSHIP CONFERENCE JOIN MORE THAN 550 ALREADY ATTENDING
JUST 15 DAYS TO GO UNTIL URBANITY-25 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
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
2
print
Print
ConstructionRenee McKeownTue 21 Jan 20

Renters Pay More On East Coast

03750d47-b1dc-4d8a-9cab-4b546e0cffa8

Sydney and Canberra lead the way for rental prices while Perth lags behind as investors look to the latest rental data.

Sydney was the most expensive place to rent a unit despite a 1.9 per cent decrease last quarter, with prices falling to $510 according to Domain's rental report for the December quarter.

Canberra followed in second place, growing 2.1 per cent to $480, Melbourne remained steady at $420 and Hobart grew 3.8 per cent to $410.

While units in Brisbane increase 1.3 per cent to $385, Darwin grew 2.6 per cent to $390, Adelaide increased 1.6 per cent to $315 and Perth remained steady at $310.

For houses, Canberra was the most expensive city, increasing 5.5 per cent for the last quarter to $580.

Rental prices for houses remained steady in Sydney and Melbourne at $525 and $430 respectively. Brisbane increased 1.2 per cent to $410 while Hobart was up 2.2 per cent to $460.

Adelaide house rentals increased 1.3 per cent over the quarter to $390 and Perth remained steady at $370.

Rental yields told a different story and were up across all Australian capital cities, with the exception of units in Hobart which went up in value by 50 per cent in the past three years.

In 2019, yields were up by an average of 3.6 per cent on houses and 3.4 per cent on for units but quarter-on-quarter basis results proved to be a mixed bag up with no change for houses and units were only only 0.2 per cent.

▲ Rental yields for units in Hobart have grown in value by 50 per cent in the past three years.


Domain economist Trent Wiltshire said even though Sydney was still expensive it was good news for renters in the area but not for long.

“New apartment construction has pushed rents down and contributed to the vacancy rate rising over the past 12 months. But rents are likely to start rising in 2020,” he said.

“Sydney remains the most expensive capital city to rent a typical unit but Canberra is catching up.”

Melbourne’s house rents were back to 2018 prices however unit prices jumped over the past three years.

“While unit rents remained flat over the quarter, prices have jumped 11 per cent over the past three years — a big leap considering the city's massive apartment construction boom occurred during this time,” Wiltshire said.

“The increase is likely a result of Melbourne’s strong population growth, which has created ongoing demand for rental properties.”

In Brisbane, the rental market looked to be slowly tightening with a rise across both houses and units.

“House and unit rents both increased by $5 in the December quarter, while the vacancy rate fell slightly over the past year,” Wiltshire added.

“This follows a fairly steady period Brisbane has experienced over the past few years.”

The property market in Perth looked to be at a turning point off the back of an improving Western Australian economy and a pick-up in population growth, with rents increasing and vacancy rates falling despite a steady last quarter.

Hobart's rental market was under significant pressure, creating difficult conditions for renters. Hobart's rental vacancy rate also remained extremely low at only 0.6 per cent, the lowest of all the capital cities.

Strong growth in rents in Canberra occurred despite an apartment construction boom and population growth.

Meanwhile rising rents and a low vacancy rate has meant Adelaide’s rental market remains competitive.

Rental vacancy rate also fell in Darwin last year, suggesting the market in that area could be close to a turning point. Rental yields also rose slightly over the past year as property prices fell by more than rents.

ResidentialAustraliaBrisbaneMelbournePerthAdelaideCanberrado not useReal EstateSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
Freecity Rouse Hill triple towers 2 Tempus Street
Exclusive

Freecity Takes Covers Off $330m Triple Towers in Sydney’s North-West

Leon Della Bosca
5 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
View All >
Cromwell 19 National Circuit Barton ACT rendering HERO
Office

Cromwell Lands Lease for Canberra Office Block Scheme

Leon Della Bosca
Landcom The Joinery Annandale a build to rent development on the former westconnex site
Build-to-Rent

Landcom Takes Cover Off BtR Plans at Annandale

Renee McKeown
Windsor Lutwyche Road DA hero
Development

Arch-Filled Commercial Strip Filed for Brisbane’s Northside

Phil Bartsch
The distinctive two-storey commercial building is earmarked for a long-vacant site along one of The River City’s busiest…
LATEST
Cromwell 19 National Circuit Barton ACT rendering HERO
Office

Cromwell Lands Lease for Canberra Office Block Scheme

Leon Della Bosca
3 Min
Landcom The Joinery Annandale a build to rent development on the former westconnex site
Build-to-Rent

Landcom Takes Cover Off BtR Plans at Annandale

Renee McKeown
3 Min
Windsor Lutwyche Road DA hero
Development

Arch-Filled Commercial Strip Filed for Brisbane’s Northside

Phil Bartsch
3 Min
Exclusive

Australia’s 5 Biggest Student Living Projects Under Way

Shravanth Reddy
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/renters-pay-more-on-east-coast