The recent release of the CoreLogic RP Data Rent Review for February 2016 confirms that over the coming months, rental growth in the capital cities could begin to recede on an annual basis due to additional new rental supply entering the market.
The review found that;
- Dwelling rental rates across the combined capital cities have not moved and continue to sit at $485 per week; at the same time last year rental rates had increased by 1.7%, highlighting that the slowdown in rental conditions has been quite sharp over the year.
- Rental rates in Brisbane, Adelaide, Perth and Darwin are currently experiencing some of their largest annual falls on record.
- All capital cities are experiencing annual rental changes which are well below their decade average levels.
According to research analyst Cameron Kusher, “With construction activity set to peak over the next 24 months, and with many new properties still to settle, there is a real possibility that rental rates will fall over the coming months.”
But it seems there is better news for regional investors with RPData’s latest Regional Rental Report revealing that rental growth remained steady across most parts of regional Australia. The star performers in the report in NSW were units where median rental rates rose by 3.1% to $330/week over the December 2015 quarter, the largest rise of any broad regional market.
With an election on the horizon and possible changes around tax for property investors, now is the time to make your move and invest in an area with the best rental growth rates around. Give Fisk & Nagle First Choice a call today to help you make a wise property investment choice.