Are rents going up or down?
A day after a report indicated rents were surging across capital cities, new research has suggested rents are actually declining.
The Domain Group's March Quarter Rental Report, released yesterday, showed rises in asking rents across capital cities. But new figures from CoreLogic RP Data dispute that finding, showing a 0.2% decline for combined capital city rents, and only modest rises for Sydney, Melbourne, Hobart and Canberra.
While the Domain Group's Andrew Wilson claimed rising rents in Sydney and Melbourne suggested fears of oversupply were "overblown", CoreLogic RP Data researcher Cameron Kusher drew an opposite conclusion.
"The extra accommodation supply, as a result of the current building boom, along with the recent record high levels of investment purchasing is adding substantial new dwelling supply to the rental market at a time when the rate of population growth is slowing from quarter to quarter," Kusher said.
One area where the reports seem to agree is the poor performance of Darwin and Perth. CoreLogic RP Data figures show asking rent in the cities declining 11.5% and 8.4%, respectively, while the Domain report indicated asking rent for houses fell 15.4% in Darwin and 11.1% in Perth.
Source: CoreLogic RP Data
So should I invest?
With contradictory information about rental growth, it can be confusing to determine if now is the time to invest in property. But poor rental growth doesn't necessarily make property a poor investment. Check out our guide on the best strategies for investing in property.