The Australian Bureau of Statistics (ABS) yesterday released consumer price index (CPI) data for the June quarter of 2021, which revealed that property rents across the combined capital cities fell sharply over the prior 12 months.
While property rents rose 0.1% of the quarter:
However, over the year to June 2021, rents were dead flat (0.0%):
The next chart summarises rental growth across the capital cities over the past quarter and year:
Annual rents fell across Sydney (-1.5%) and Melbourne (-0.8%), but were flat or rose elsewhere.
The next chart plots the time series of annual rental growth, which shows a mixed bag:
The ABS’ results obviously differ markedly from CoreLogic’s, which reported the strongest annual increase in rents since February 2009:
The reason likely relates to the fact that the ABS measures rents currently being paid across the market, whereas CoreLogic measures advertised rents. Thus, there is likely a stock versus flow issue going on here with the ABS’ rental growth lagging.