Hotspotting Podcast | Episode 76 - Rents Rise in Six Cities

Posted on 15/01/2019  
Hotspotting Podcast | Episode 76 - Rents Rise in Six Cities

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Media tends to measure markets by movements in median prices. But other measures of the health of major markets are worthy of attention, including sales volumes, vacancy rates and movements in rentals.

The Domain Rental Report for the December 2018 Quarter shows that rents are stronger than sale prices in terms of growth in the past year.


Six of the eight capital cities delivered growth in their rentals in 2018, both for houses and for apartments.
There is, as always, a strong correlation between vacancy rates and rental growth.


The cities with the tightest rental markets, Hobart (0.4% vacancy) and Canberra (0.9%), are the ones with the highest annual growth in their rentals.


Other cities with low vacancies, Adelaide (1.2%) and Melbourne (1.9%), have also recorded solid growth in their rentals.


Two cities where vacancy rates have been high in the recent past but have improved recently - Brisbane (3.0%) and Perth (3.4%) - are also both delivering moderate growth in their rents.


The only cities where rents have fallen in the past year are those where vacancies are trending higher - Sydney (current vacancy rate 3.2%, up from 2.1% a year ago) and Darwin (4.0%, up from 2.8% a year ago).

 

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