CoreLogic’s national hedonic rental index held put in May and was up 0.4% over the past twelve months, according to their latest Home Value Index results.
According to the May Index, Darwin and Sydney’s rental markets remain the largest drag on national rental growth, with rental rates falling 5.2% and 2.9% respectively over the past twelve months.
Hobart rents are rising the fastest amongst all the capital cities, up 4.9% over the past twelve months.
The result of strong demand coupled with low rental supply.
Although CoreLogic’s head of research Tim Lawless described rental markets as “generally sluggish,” gross rental yields are continuing to recover from their recent record lows.
Nationally, the gross rental yield is recorded at 4.13%, the highest gross yield since May 2015, but still 14 basis points below the decade average of 4.27%.
The May Index noted, “each of the capital cities and broad regional rental markets, apart from Regional Tasmania and Regional Northern Territory, have recorded either a steady or higher gross yield profile relative to the same time a year ago; a reflection of the change in rental rates being greater than the change in dwelling values.”