A report has highlighted some of the areas that are experiencing higher rent returns across Australia. The report, from property information and services provider CoreLogic RP Data, was based on advertised rents. It looked at average rental prices for the major capital cities over the year. Although there is a gradual slowing in rental growth expected over the next few months, the rental market in the capital cities is still positive.
Over the past year, rents have grown on average 0.5%, with mixed results from among the capital cities. The results were as follows:
- Melbourne had the highest growth at 2.1%
- Sydney recorded a 1.9% growth rate
- Canberra came in at a 1.0% increase
- Brisbane recorded a 0.5% growth rate
- Adelaide had 0.1% growth
Within the capital cities, however, the results are more varied, and highlight how important it is for people looking for property investments to do their research and really understand the areas that are in demand with tenants. Analysts suggest that the highest rises in rent are being seen in inner city areas that have the highest price properties. This is probably not a surprising result, however it is interesting to see the figures for a selection of the top suburbs. For example, the top suburbs for rental growth in houses in Sydney were predominately in the wealthy Eastern and Northern inner city areas, with Collaroy, Rose Bay and Northbridge recording substantial gains of over 25%. In Melbourne, Black Rock and Sorrento recorded gains of 20% and 15% respectively. In Brisbane, the suburbs of Chelmer, Doolandella and Norman Park all had increases of around 10 to 15%.
In terms of units, the results were equally mixed. In Sydney the suburbs of Greystanes, Arncliffe and Enmore all recorded 13 to 17% increases. In Melbourne, 15 to 22% gains were seen in the suburbs of Cremorne, and Oakleigh East, Kew East and Burwood all recorded rent growth of around 11 to 15%. In Brisbane, Clontarf recorded an impressive 20% growth rate, with the inner city suburbs of Salisbury and Thorneside also showing gains of 12 to 16%.
This kind of information can be invaluable for those with property investments and those looking to break into the market, as it gives an invaluable insight into what landlords can expect over the next few months. From a strategic point of view, it can also help with pricing your property in line with market expectations. If you want to give yourself a head start in the market, with access to property investment experts and up to date data and research, talk to one of Australia’s leading property investment companies, Ironfish.