RP Data: Quarterly rental data highlight slowing capital market
Owners of investment property could be interest to see the latest statistics from RP Data, with the recently released Quarterly Rental report highlighting that rents of houses across Australia's capital cities have remained unchanged during the first six months of 2014. However, rents for units and apartments have risen by 2.4 per cent - which could be good news for those looking into purchasing into these the various developments across the nation.
City-by-city, houses in Sydney, Brisbane, Adelaide, Darwin and Canberra all saw no changes in the rental prices for house, while Melbourne, Perth and Hobart all saw the asking price actually drop - declining by 1.3 per cent, 1 per cent and 1.5 per cent respectively. Overall, the asking rent for capital cities during the three months to June 2014 remained unchanged at $430 per week, while units saw their rent rise to $420 per week - an increase of 1.2 per cent.
RP Data report author Cameron Kusher said this slowing of rental growth has been influenced by a number of different factors, including low interest rates, which have enticed more people to begin moving into the real estate market themselves as first home buyers rather than continuing to rent.
"The quarterly slowdown in rental growth is reflective of the growing demand for housing highlighted by increasing sales volumes which in-turn eases the upwards pressure on rental rates. With inflation running at an annualised rate of 2.9 per cent over the 12 months to March 2014, rental rates are currently falling in real terms at both a national and capital city level," said Mr Kusher in a July 10 statement.
"In regional markets, we are seeing the rental market shift from one where locations linked with the resources sector were seeing strong rental growth and are now seeing rental rates fall in many instances. On the other hand coastal lifestyle markets are now starting to see some growth return after many years of poor value and rental growth prospects."
This could present a wonderful opportunity for the purchase of rural real estate or lifestyle properties in holiday locations. As more people begin to move into the nation, investigating regions with strong regional business growth and resource industry growth will ensure your homes will be in demand in areas where people are frequently looking for accommodation.