Tenants are returning to the driver’s seat as asking rents show little to no growth
IMAGINE negotiating your rent down. Yes, down.
That could be on the cards for tenants in several capital cities after almost a year of lacklustre rental growth, or even decreases in the weekly asking rent.
The latest CoreLogic RP Data rental review shows rents across the combined capitals were virtually unchanged in October, down by 0.1 per cent for the month. In four of the eight capital cities rents actually fell.
And data out today from SQM Research also suggests a whiff of good news for renters. The number of rental vacancies rose slightly across the nation in October from 2.1 to 2.3 per cent. So with rental vacancies (the amount of unoccupied rental properties advertised at a particular time) on the way up, and asking rents on the way down, tenants could be in the driver’s seat in 2016.
“Rents have actually fallen four of the last five months. I think we’re pretty close to a pattern now,” said CoreLogic RP Data research analyst Cameron Kusher.
The rate fell 0.2 per cent in June, 0.3 per cent in July, 0.4 per cent in August, was unchanged in September, down 0.1 per cent in October; I think there’s definitely a pattern there that rental rates are starting to fall,” he said.
Could renters be holding the reigns in the new year? Picture: Paul Guy
Could renters be holding the reigns in the new year? Picture: Paul GuySource:News Corp Australia
“I think the amount of new unit stock being built, particularly in Melbourne and Brisbane, is going to hamper any rental increases. That’s going to mean landlords don’t have the scope to lift rents. In fact, if they’ve got a decent tenant they’re going to have to cut rents. I’ve already heard stories of that happening in Brisbane,” Mr Kusher told news.com.au.
According to CoreLogic RP Data figures, the weekly asking rent for houses in the south Brisbane suburb of Ellen Grove have dropped 38.9 per cent over the past 12 months to $330 and in the city’s north, units in Grange have fallen by 31 per cent to $345 a week.
In Sydney, Bayview on the northern beaches has seen rents drop by 30.7 per cent to a median asking rent of $983 a week for houses; Claremont in suburban Perth has had rents decrease by 28.6 per cent a week to $750 and Lyons in Darwin had a 28 per cent slump in weekly rents to $720 a week.
Amy Sanderson, LJ Hooker head of property investment management said after a sluggish year of rental growth, the current market has struck a “good balance”.
“It’s a good time for both sides I think, for tenants and landlords,” Ms Sanderson said.
“It’s times like these that some renters can afford to be a bit more fussy and have a better chance to get the property they want at a price they want,” she said.
“A savvy renter can sit down now and analyse the market, work out what their must haves are and get the money right,” she said.
But that all depends on their home town. Mr Kusher said while the national rental market remains sluggish, each city is moving at its own pace.
“You can see there’s quite a bit of discrepancy across the cities. Rents are still rising in Sydney, Melbourne and Hobart, they’re pretty flat elsewhere, and falling pretty sharply in Perth and Darwin. But in all instances the rate of rental growth now is slower than it was at the same time last year,” he said.
“There’s potential that rents could be falling in Melbourne and Brisbane, but I think Sydney’s a little more sheltered than that just because there’s a massive housing shortage in Sydney,” he said.
“I don’t think rental rates are going to collapse, but there will be a bit of a pull back so I guess the point is to be realistic about what you can afford. You might be able to get it cheaper than you think, but if you think you’re going to get that property that’s $600 a week to rent for $500 a week then that’s probably fairly unrealistic. But you might be able to get it for $560 or $570 and that’s the reality of it.”
Suburbs where rental are dropping
Perth (combined dwelling rents are down 2.9 per cent for the quarter to $454)
Houses
Claremont -28.6 per cent (drop in asking rent) $750 (weekly rent)
Coolbinia -27.5 per cent $488
Waterford -26.7 per cent $550
Menora -24 per cent $570
North Beach -18.6 per cent $570
Units
Crawley -18.4 per cent $400
Mount Hawthorn -18.2 per cent $450
Subiaco -16 per cent $500
Daglish -14.4 per cent $385
Connolly -13.7 per cent $440
Darwin (combined dwelling rents are down 4.7 per cent for the quarter to $523)
Houses
Lyons -28 per cent $720
Fannie Bay -12.3 per cent $965
Anula -11.1 per cent $560
Rapid Creek -9.4 per cent $625
Durack -9.2 per cent $590
Units
Farrar -10.7 per cent $500
Rapid Creek -9.9 per cent $430
Brinkin -7.1 per cent $460
Fannie Bay -6.9 per cent $540
Stuart Park -6.8 per cent $550
Brisbane (combined dwelling rents are down 0.7 per cent for the quarter to $430)
Houses
Ellen Grove -38.9 per cent $330
Fig Tree Pocket -15 per cent $595
Hawthorne -13.7 per cent $565
Bulimba -10.3 per cent $650
Elimbah -10 per cent $470
Units
Grange -31 per cent $345
Bardon -22.1 per cent $415
Kenmore -12.7 per cent $463
Mount Ommaney -12.7 per cent $550
Wakerley -10.2 per cent $420
Sydney (combined dwelling rents are up 0.1 per cent for the quarter to $593)
Houses
Bayview -30.7 per cent $983
Taren Point -25.7 per cent $520
Denistone East -17.1 per cent $580
North Wahroonga -16.7 per cent $850
Clovelly -16.1 per cent $1150
Units
Seaforth -30.4 per cent $800
Northbridge -13.6 per cent $540
Tamarama -11.8 per cent $750
Marayong -11.7 per cent $415
Queens Park -11.4 per cent $620
Melbourne (combined dwelling rents had a 0 per cent change for the quarter to $448)
Houses
Parkville -24 per cent $480
Kilsyth South -22.9 per cent $420
Park Orchards -20.6 per cent $675
Research -20.4 per cent $430
Eaglemont -12.2 per cent $523
Units
Tyabb -12.3 per cent $250
Kooyong -10.9 per cent $570
Albert Park -8.2 per cent $423
Sandringham -7.5 per cent $370
Rosebud -7.1 per cent $295
Caulfield -7 per cent $400
Adelaide (combined dwelling rents are down 0.9 per cent for the quarter to $364)
Houses
Hawthorn -16.1 per cent $470
Glenside -16.1 per cent $523
Glenelg -15.8 per cent $493
Unley Park -12.2 per cent $665
Saint Morris -12.1 per cent $400
Units
Gilberton -19 per cent $340
Frewville -13.9 per cent $373
Renown Park -13.8 per cent $280
Thebarton -12.9 per cent $305
Tennyson -11.4 per cent $310
Allenby Gardens -11.3 per cent $295
Hobart (combined dwelling rents are down 0.4 per cent for the quarter to $337)
Houses
Lewisham -11.4 per cent $310
Glebe -10.1 per cent $355
Dodges Ferry -7.1 per cent $260
Geilston Bay -7 per cent $330
Brighton -3.1 per cent $310
Units
Rokeby -28.3 per cent $190
Rose Bay -17.5 per cent $260
Berriedale -14.1 per cent $198
Howrah -9.2 per cent $273
Mount Nelson -5.2 per cent $228
Canberra (combined dwelling rents are down 0.6 per cent for the quarter to $491)
Houses
Hawker -24.3 per cent $490
Yarralumla -20 per cent $600
Weetangera -14 per cent $499
Theodore -13.6 per cent $428
Campbell -13 per cent $600
Units
Hawker -11.1 per cent $320
Griffith -9.5 Per cent $380
Campbell -9.1 per cent $300
Downer -8.8 per cent $310
Hughes -8.6 per cent $265
SOURCE:
REALESTATE.COM.AU
NEWS.COM.AU
