CoreLogic has released its March quarter rental review, which reveals that national rents grew by 3.2% over the first quarter of 2021 – the strongest national rental growth since 2007:
In the year to March 2021, rents grew by 3.9% nationally.
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Rental growth was much stronger in Q1 across the combined regions (4.1%) than the combined capitals (2.9%). The difference is even more stark over the year, with capital city rents rising only 2.2% versus 8.6% growth across the regions.
Whereas house rental growth was stronger than units across the combined capitals, but weaker across the regions:
Melbourne continues to records the weakest growth in rents, with house rents up 1.6% in Q1, while unit rents were unchanged over the quarter. Over the year, Melbourne rents rose by only 0.9% for houses, but fell 8.2% across units:
By contrast, rental growth was extreme across both Darwin and Perth, making up for years of rental declines.
Finally, national gross rental yields were recorded at 3.55%, down from 3.71% over the December quarter and 3.76% a year earlier as dwelling values outperform rental growth:
Rental yields should continue to compress as price growth outpaces rents.