According to Australian Property Monitor’s latest Rental Price Series Quarterly Report, rents increased in both Sydney and Melbourne but either remained flat or fell in other capital cities.
APM senior economist Andrew Wilson said that demand for rental properties in Sydney and Melbourne saw their rental markets strengthen over the quarter.
Record levels of investor activity in Sydney have not led to falling rents from oversupply, which indicated the local investor market was sustainable at this stage, he noted.
“Signs of increased demand for rentals in Melbourne may reflect the low number of first home buyers in the local market and strong population growth.”
Dr Wilson said that rental yields for houses and units had fallen in most capital cities, which reflected the impact of prices growth.
Of the mainland capital cities, Brisbane had the highest rental yields for houses, while Adelaide had the highest yields for units.