Increased
dwelling construction and record investor activity have failed to provide
relief for tenants, with rents in most capitals remaining at or near record
levels. The national median weekly asking rent for
houses increased by 0.6 percent over the December quarter with
the unit rent increasing by 0.1 percent.
Sydney rents continue to rise despite record activity from
investors over the past year and remain the highest of all the state capitals.
The investment market remains resilient, with gross yields
consolidating or rising in most capitals for both houses and units over the
quarter. Flattening price growth and rising rents are putting a floor under
gross yields which had been declining due to recent strong prices growth.
Upward pressure on rents is set to continue through 2015,
particularly in the robust Sydney market where underlying demand continues to
outstrip supply.
Generally high
and rising rents, tight vacancy rates and consolidated gross yields are
offsetting recent concerns regarding possible over-investment in residential
property – particularly in the Sydney market.
Read full report here Domain Group December Qtr Rental Market Report
