Growth in rental rates eased over the second quarter of 2021, with the national rental index rising by 2.1% over the 3 months to June compared to a 3.2% rise over the March quarter.
While rental growth has slowed over the recent months and quarters, the latest figures take national rental rates 6.6% higher over the year; the highest annual growth in dwelling rents since January 2009.
Regional rents continued to outpace capital city rents over the second quarter of 2021, with regional dwelling rents rising by 2.7% against a 1.9% rise in capital city rents. This was a 1.4 percentage point reduction in the rate of growth quarter on quarter for the combined regionals, and a 1 percentage point reduction for the combined capital cities.
Despite the easing in growth in recent months, regional Australia recorded an annual rate of rental growth of 11.3% in June 2021. This is the highest annual growth result on record, with the CoreLogic rental index commencing from 2005.
The weakest rental markets over the quarter were in Melbourne (0.6%), Canberra (+1.6%), and Sydney (+2.0%). Melbourne is now the second cheapest rental market, with typical dwelling rents coming in at $444p/w, this is only $14 more than Adelaide where capital city rents are the lowest.
At the opposite end of the spectrum, the strongest rental growth was seen across Darwin, with dwelling rents up 4.5% over the quarter. To rent a typical dwelling across Darwin would require $548p/w, the third most expensive of the capital city dwelling markets, after Canberra at $620p/w and Sydney at $582p/w.
Are you getting the most out of your property investment? Speak to our Property Management team to find out.