Rental yields have consistently risen for 12 months

Tuesday 06 Nov 2018

National gross rental yields have consistently risen from a record low of 3.61% in September last year to reach 3.75% at the end of this September, according to Corelogic’s October Home Value Index report.   As national dwelling values trend lower and rental rates edge higher, gross rental yields have consistently improved, albeit from record lows.   Yields have trended higher in every capital city relative to a year ago, except in Hobart, where rents haven’t been able to keep pace with the rapid rise in housing values, and in Darwin, where weekly rents have fallen at a slightly faster rate than dwelling values.   Gross rental yields remain the lowest in Melbourne, rising from a recent record low of 2.88% to reach 3.10% in September. Gross yields in Sydney came in a close second lowest, tracking at 3.22%, up from a recent record low of 3.04%.   The highest gross rental yields can be found across regional Northern Territory (6.9%) while the highest capital city yields are in Darwin (5.6%) and Hobart (4.9%).   Landlords urged to consider pets   First National is leading the charge in keeping families and their much-loved furry and four-legged friends together by urging landlords to consider being pet-friendly to stop the unnecessary euthanasia of family pets.   Over 100,000 dogs and cats are surrendered to the RSPCA each year in Australia, 22 per cent of which are euthanised, and one of the contributing factors is the difficulty rental tenants experience finding pet-friendly rental accommodation.   Animal welfare agencies indicate that as many as 30 per cent of the dogs and cats that are surrendered are from owners who are unable to locate adequate accommodation.   As one of the very few real estate network’s in the country to include a pet-friendly rental search option on their website, First National Real Estate recognises, at 62%*, Australia has one of the highest household rates of pet ownership in the world – and it is anticipated more than 1.1* million Australian households plan to get a pet within the next 12 months.   You can read more about why you should at least flag your property ‘Pet Friendly’ on page two of this month’s newsletter.   Monthly change in capital city values   Hobart remains the best performing capital city, whereas Melbourne takes the mantle of the weakest. The highest rental yields have occurred in Darwin and the lowest in Melbourne.                                    MONTHLY           ANNUAL Darwin                   +0.4%                 -6.2% Canberra               +0.2%                 +2.4% Brisbane                +0.1%                 +1.2% Hobart                     0%                    +11.5% Adelaide                 -0.1%                 +0.7% Sydney                   -0.6%                 -5.4% Perth                      -0.8%                 -2.3% Melbourne             -0.9%                 -0.5