Across Australia, rents remained the same for the month of June, however CoreLogic data shows they were 0.3% higher over the March quarter of 2018 and 1.8% higher over the 12-month period.
Rental growth over the past quarter was less than half of what it was over the same period in 2017, when rents climbed by 0.7%, and also lower than the 2.4% annual increase 12 months ago.
Hobart reported the highest growth in rental rates of all the capitals with a 10.7% increase over the past 12 months. In the same period, data shows annual rental change is lower than previous years in Sydney, Melbourne and Canberra.
CoreLogic’s research analyst Cameron Kusher said, “The first two quarters of 2018 have seen softer rental growth than the same two quarters of last year, highlighting the slowing rental growth across the nation.”
CoreLogic said that with value growth slowing at a faster pace than rental growth, rental yields are starting to lift from record lows, although the increases are moderate. The data shows yields across the country have increased by 0.6% in the past 12 months.
With rental growth continuing to outpace dwelling value growth, it is likely that rental yields will continue to firm over the coming months and quarters, particularly in Sydney and Melbourne, CoreLogic said.