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Capital City Rents Moving In Different Directions

New data from rent.com.au shows that Australia’s capitals are split when it comes to median rent price changes, with 4 seeing hikes and 4 seeing drops.

Australia rent prices

The information comes from a report based on property data from Q2 (April to June 2017), and shows relative stability across the country’s rent prices despite slight changes in all capitals.

The quarterly changes to median rent were:

Capital city (metro area only) Q1 median rent (overall)($/week) Q2 median rent (overall)($/week) % change to median rent (overall)
Sydney $550 $550 0.00%
Melbourne $395 $400 1.27%
Brisbane $410 $400 -2.44%
Perth $360 $350 -2.78%
Adelaide $340 $335 -1.47%
Hobart $360 $370 2.78%
Darwin $450 $440 -2.22%
Canberra $450 $460 2.22%
National average $390 $390 0.00%

Source: rent.com.au

As shown, despite fluctuation of rent prices in individual markets, national rent prices as a whole remained stable this quarter.

Sydney was the only city to see no change to its median rent prices, but remained the most expensive city to rent in overall, with its nearest competitor (Canberra) being nearly a full $100/week cheaper than Sydney.

Which cities have the fastest-selling properties?

The report also gave insight into property turnover rates for sales in the different capital cities.

Results were slightly more positive overall, with 5 of the 8 capitals seeing increases to their turnover rates for both apartments and houses.

Apartments Houses
Q1 turnover rate (no. of days) Q2 turnover rate (no. of days) % change Q1 turnover rate (no. of days) Q2 turnover rate (no. of days) % change
Sydney 19.31 19.01 -1.55% 23.00 21.87 -4.91%
Melbourne 22.01 20.05 -8.91% 23.17 22.84 -1.42%
Brisbane 27.01 31.08 15.07% 25.88 28.12 8.66%
Perth 37.88 43.95 16.02% 36.98 41.16 11.30%
Adelaide 28.16 28.95 2.81% 25.09 26.75 6.62%
Hobart 14.85 15.83 6.60% 15.83 17.05 7.71%
Darwin 39.16 41.84 6.84% 36.88 39.98 8.41%
Canberra 20 19.6 -2.00% 18.67 20.84 11.62%

Source: rent.com.au

The most significant changes were seen in Brisbane and Perth, which saw their turnover rates for apartments slow by 15.07% and 16.02% respectively.

How are capital city property values doing?

Comparing the quarterly changes in median rent prices against the changes to dwelling values over the same period reveals some incongruity, displaying that rent prices and property prices aren’t tied particularly closely.

According to CoreLogic data, only Melbourne, Adelaide, and Darwin had changes to their median dwelling prices that mimicked the changes to their median rent prices (e.g. both went up or both went down).

The other 5 capital cities saw rents increase while dwelling values decreased, or vice versa.

Q2 change to dwelling values Median dwelling price
Sydney 0.8% $880,000
Melbourne 1.5% $675,000
Brisbane 0.5% $497,200
Adelaide -0.2% $440,000
Perth 0.1% $484,000
Hobart -1.3% $355,000
Darwin -5.2% $480,000
Canberra -0.4% $625,000
Combined Capitals 0.8% $635,000

Source: CoreLogic

Additionally, while the country saw an overall bump of 0.8% to its national average dwelling values, there was no overall change to the national average for rent prices.

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