Rental markets across Australia remained mixed from the year to November, with Perth and Darwin the top performers in terms of rental earnings in the housing and rental segments. housing, according to CoreLogic.
The National Rent Index recorded a 3.2% increase for homes and a 3.1% decline for units during the year through November. Perth reported the largest increase in rents for homes at 8.6% while Darwin posted the largest increase for units at 6.3%. What do these gains indicate on the two capitals?
Eliza Owen, head of residential research at CoreLogic, said that while these gains sound like good news to homeowners in both states, they actually indicate a different thing.
"It should be noted that the reason for these large rent increases is the gradual withdrawal of investors from the market. Investors have only accounted for a small portion of market activity at the in the years since the mining downturn, "she said.
In fact, September financial data from the Australian Bureau of Statistics shows that the investor share was only 16.2% in Western Australia and 11.6% in the Northern Territory. These were the lowest investor participation rates of the month.
The annual growth in rents in both markets also contextualizes recent rent increases. Compared to their highs in 2013 and 2014, rents were 11.7% lower in Perth and 21.6% lower in Darwin.
"Both cities could see the gradual reintegration of real estate investors, which would increase rental supply and promote slower rental value growth over time," Owen said.
Top suburbs:
Chermside
,
Lalor park
,
st kilda west
,
fresh water
,
Mayfield
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