CoreLogic’s June housing market report reveals that Australian property rents rose by 6.6% in the year to June 2021 – the strongest annual increase since February 2009:
Rent values continue to see strong growth, though gross rental yields are compressing. In the year to June, Australian rent values increased 6.6%; the strongest annual appreciation in rents since February 2009. The highest annual growth in rent values was across Darwin, where rents have increased 21.8% across the dwelling market. This was followed by Perth (16.7%).
“As with national home values, much of the increase in rental rates may be associated with government stimulus, increased household savings and a strong economic recovery from COVID restrictions. Rent value increases may also be a function of more subdued investor activity between late 2017 and mid-2020, and the resulting lower rental supply, as well as more demand deflecting towards rental markets in areas where home ownership has become less attainable due to affordability challenges.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
