Australian property rents suffer biggest ever fall

The data continues to deteriorate for Australia’s army of negatively geared landlords, with the Australian Bureau of Statistics (ABS) reporting that capital city property rents declined by a record 1.3% over the June quarter and by 1.2% over the year:

Looking across the capital cities, you can see that rents were universally weak:

Most notably, rents fell by 2.0% in Sydney and 1.1% in Melbourne over the June quarter. Given immigration has collapsed and both cities still have an avalanche of supply in the pipeline (see next chart), rents should continue to fall:

When viewed alongside falling dwelling prices in these two cities:

Leveraged property investors are facing a precarious future.