Rental growth stable or waning

Rental growth stable or waningRental growth is either flat or falling slightly for both units and houses in Australia’s major centres, according to the latest Domain Group Rental Price Series Quarterly Report.The report, which measured data for the September quarter, showed the median weekly asking rent for houses decreased by -0.3 per cent, while unit rents fell by -0.4 per cent.All of the capital cities recorded steady house rental results during the September quarter, except for Perth, which saw median weekly asking rents fall from $460 to $4 (down -2.2 per cent), and Darwin, which saw rents increase from $645 to $660 (+2.3 per cent).In terms of unit rents, Hobart, Melbourne, Adelaide and Darwin all recorded zero growth, while Sydney (-1.0 per cent), Perth (-1.3 per cent) and Canberra (-1.3 per cent) all recorded a drop. Brisbane was the only capital city to undergo an increase in median asking unit rents, rising from $365 to $370 per week (+1.4 per cent).Dr Andrew Wilson, Domain Group’s senior economist, said he expected upward pressure on rents to resume in Sydney.”Unit rents weakened in Sydney over the September quarter. However, the median asking house rent remained steady at the June quarter’s record level of $510 per week despite record levels of investor activity in the local market,” he said. “Although we’ve seen a pause in rental growth over the September quarter, demand will continue to put upward pressure on rents in Sydney.”In Sydney, yields are holding, asking rents are still strong and there are currently no signs of overshooting market fundamentals.”Wilson said demand drivers will also impact rental growth in Melbourne for both houses and suburban units, although a prospective increase in the number of new CBD apartments will act to moderate overall rising outcomes.”Rental growth in other capitals is set to continue to move sideways at best with the recent trend of rental falls in Canberra and Perth levelling off,” he added.For more on the findings of the Domain Group report, go to: http://domain.com.au/groupdata