An oversupply of rental properties and slow population growth has caused September rental growth to slow to an all time record low, according to CoreLogic RP Data.
At a national level, September recorded zero rental growth, failing to keep up with inflation.
Melbourne and Hobart posted slight gains of 0.3 per cent and 0.1 per cent.
Sydney was flat, while rents in Adelaide, Brisbane and Canberra all fell 0.2 per cent. Struggling commodities hubs, Perth and Darwin saw rents plunge 0.8 and 1.4 per cent respectively.
The fall in rents follow data from the Australian Bureau of Statistics (ABS) of a marked slow down in population growth for the March quarter. According to the ABS, population growth is now running at the slowest rate in a decade, following a 16 per cent fall in immigration rates over the year to March. Western Australia recorded a 71 per cent fall in net overseas migration in the past two years to March as job opportunities in the once booming resource sector dry up.
Slowing population growth is expected to be a challenge to the housing market as we build more homes than are actually needed.
» Rents fall across most cities in September – The ABC, 8th October 2015.
» Australian rents just grew at the slowest pace on record – Business Insider, 8th October 2015.
» Slowing population growth presents economic, housing market challenge – The ABC, 24th September 2015.