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The latest CoreLogic RP Data Regional Rent Report revealed that while rental growth remained steady across most parts of regional Australia, Western Australia saw house and unit rents languish; house rents in the state dropped -2.6 per cent over the quarter to December 2015, while unit rents fell -3.0 per cent. Unit rents also stagnated in Queensland and Tasmania.
The December 2015 regional results for the quarter follows on from the recent release of the CoreLogic RP Data capital city rental review for December which also reported a decline in rental growth rates. In some capital city markets, rental growth rates are now at their lowest on record.
Research analyst Cameron Kusher said on a broad basis, for houses, most regional areas were showing a fall or no change at all in rental rates over the 2015 calendar year, with the exception of the two most affordable regional rental markets of Tasmania and South Australia. Across the regional unit markets there was more variation, with rises as great as 6.5 per cent across New South Wales and falls as great as -10.3 per cent in the Northern Territory.
Highest rental growth regions (houses)
- NSW – Murrumbidgee rents increased by 6.9% over the quarter to $310/week
- Vic – Gippsland rents increased by 5.8% over the quarter to $275/week
- Qld – Gold Coast rents increased by 3.9% over the quarter to $499/week
- SA – Outer Adelaide rents increased by 6.7% over the quarter to $320/week
- WA – South Eastern rents increased by 3.1% over the quarter to $330/week
- TAS – Northern rents increased by 3.7% over the quarter to $280/week
Highest rental growth regions (units)
- NSW – Murray rents increased by 4.5% over the quarter to $230/week
- Vic – Wimmera rents increased by 14.3% over the quarter to $240/week
- Qld – North West rents increased by 8.0% over the quarter to $270/week
- SA – Murray Lands rents increased by 5.1% over the quarter to $205/week
- WA – Rents across three regions were unchanged over the quarter
- TAS – Both Mersey-Lyell and Southern rents were unchanged over the quarter
As stated earlier, the only market where house rents fell over the December quarter was in Western Australia. For units, rents were also lower in Queensland Tasmania and Western Australia over the December 2015 quarter.
The Pilbara region in Western Australia, South West Queensland & Mackay are now among the weakest performing rental markets for 2015.
Information source: Core Logic RP Data