Australia & # 39; s residential rental market remained a bright spot for property investors, as it recorded in July its highest annual rental gain since 2008, according to the latest CoreLogic report.
The annual growth rate of national rents has climbed 7.7%, a sign that rental markets remain tight.
But CoreLogic's research director, Tim Lawless, noted that under the title number, rental terms were still diverse.
"Rental conditions in Darwin and Perth are the strictest among the capital cities, reflecting low vacancy rates and high rental demand," said Ms. Lawless.
“Both cities saw a substantial reduction in investment activity from 2014, which likely contributed to the rental housing shortage. "
In July, house rents rose 22.7% in Darwin and 16.6% in Perth. The two cities also posted substantial gains in unit rents at 20.3% and 14.6%, respectively.
In our two largest real estate markets, annual rental earnings were relatively modest, at least for the housing segment. House rents rose 7.2% in Sydney and 2.8% in Melbourne.
The unit rental market tells a different story, especially for the Victorian capital. While Sydney rents rose again, albeit slightly, to 0.9%, Melbourne recorded a 4.9% drop.
"The good news for landlords is that rental markets in these areas are stabilizing after a substantial reduction in rents due to the high vacancy rates due to the halt in migration to the stranger and a preference for high density living during the pandemic, ”Mr. Lawless mentioned.
How are rental yields presented?
With home values ??exceeding rents, gross rental yields hit an all-time high of 3.4% in July.
Sydney and Melbourne lowered this result as their yields fell to 2.5% and 2.8%, respectively.
“Considering that mortgage rates on new investment loans average around 2.8%, gross rental yields outside of Sydney and Melbourne are likely to offer investment opportunities. Positive cash flow investment, ”Ms. Lawless said.
"Considering that yields outside of Sydney and Melbourne are high relative to mortgage rates and home values ??are expected to rise further, we are likely to see investment activity continue to rise . "
Top Suburbs:
spear wood
,
marrickville
,
victoria park east
,
alder
,
Scarborough
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