Largest annual falls in advertised weekly rents

With combined capital city weekly rents falling by -0.2% over the past year, we take a look at the capital city suburbs that have recorded the largest falls in weekly advertised rents over the past year.

The CoreLogic Monthly Rental Report for April 2016 showed that weekly rents have fallen by -0.5% for capital city houses over the past year and unit rents have increased by a record-low 1.2%. Substantial new housing supply, slowing population growth, weak wages growth and recently heightened level of purchasing by investors are all contributing to falls in rents. There is also currently a record high number of new units under construction, the last Census (2011) showed that units are more than twice as likely to be rented than houses. Given this, much of the new housing supply under construction is ultimately likely to end up as rental accommodation.

Annual change in weekly rents across the combined capital cities, houses vs. units2016-02-23--img1

While for an investor falling rents are not ideal, particularly given home value growth is generally slowing, for renters it is great news because it means they can potentially reduce their housing costs or find superior accommodation for a similar cost.

With rental rates marginally lower over the past year across the combined capital cities, there are significant differences across individual suburbs. There are now many capital city suburbs where advertised rental rates are lower than they were 12 months ago and the table included in this report shows the 5 suburbs in each capital city that have seen the largest falls in the median advertised rental rate over the year.

For houses it is noticeable that some premium suburbs have seen the largest falls in advertised rental rates over the past year. Whether this is due to fewer executive rents as population growth slows or previous renters taking advantage of record-low interest rates to borrow to purchase is unknown. What is clear is that demand for rental houses is easing and in a number of suburbs rental prices have fallen dramatically.

A number of premium inner-city locations have made the list for units after seeing the median of advertised rental rates fall, in some cases dramatically over the past year. While the suburbs listed are often not the most significantly supplied rental markets, there are signs of weakening growth in many price inner-city unit markets.

With more rental supply set to enter the market over the coming years we expect that in order to keep tenants, landlords may have to reduce their rents. Although the cost of purchasing a house is becoming increasingly unaffordable it seems that the cost of renting is set to become more affordable over the coming years.2016-05-23--img2

With Compliments Linda and Carlos Debello

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About ljgrealestate 据联大

Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
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