Australian Property Monitors (APM) today released its rental market report for June, which revealed strong annual growth in Sydney and Melbourne house rents, but below inflation or negative growth elsewhere:
As you can see above, rents in Perth and Canberra, in particular, have fallen sharply over the past year across both houses and apartments.
The weakness in Perth is likely attributable to the unwinding of the mining boom, whereas cutbacks in the Canberra public service, along with recent strong dwelling construction, have weakened rents there.
In terms of gross rental yields, yields have fallen across most capitals over the past year, reflecting both solid house price growth (e.g. Sydney, Melbourne, Brisbane) and/or falling asking rents (Perth and Canberra).
Brisbane remains the most attractive major capital for yields, with Melbourne remaining the worst.
