Corelogic has released data today showing that annual rental growth across Australia has increased to 8.9%, which is the fastest pace of growth since the Global Financial Crisis struck Australia in 2008. However, the pace of growth is slowing:
On a quarterly basis, rental growth peaked in the March quarter at 3.2% and has consistently eased to 1.9% in the September quarter. However, the annual rate of growth is still rising, up 8.9% over the year to September.
The easing rate of rental growth can mostly be attributed to a slowdown in house rents where the growth rate has softened from 3.5% in the March quarter to 1.9% in the September quarter. At the same time, growth in unit rents appear to have stabilised around 1.9% quarter-on-quarter, down from a recent peak of 2.5% in the three months to March.
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
