Sales Market Strong but Rents Still on the Rise

Nationally, RP Data shows Capital Gains Outpacing Change in Weekly Rents

The RP Data September 2014 Quarter Rental Review provides a thorough analysis of recent rental market activity.Nationally, the annual rental rate for houses and units increased by 1.3 per cent while in the capital cities, house rents remained flat at 0% growth; rental rates for units increased by 2.4 per cent.

However, Doyle Spillane is finding on the northern beaches that rents continue to rise, as demand for both homes and units continue to outstrip supply.

In Sydney, the house weekly median rental rate was $525, and for units, $500 for this quarter.

According to RP Data national research director, Mr Tim Lawless, “the performance of rental markets are diverse, however the common theme is that generally the rate of capital gain is outpacing the change in weekly rents which is driving rental yields lower. This is happening at a time when investment demand is at record levels and trending higher, which highlights that most investors are focussing on capital gains and ignoring the low yield scenario. The softer rental conditions are likely the result of the surge in investor related activity which is seeing more rental supply hit the market.”

Download full report here. Source : RP Data National September Quarter Rental Review 2014