PERTH rents plummeted 8.6 per cent over the past year, contributing to the largest annual decline on record for the nation, new Corelogic data shows.
The June rental report reveals weekly rents for the capital cities fell 0.6 per cent on last year – the greatest drop since records started in 1996 – on the back of slowing population growth, high levels of new housing construction and soft wages growth.
Darwin recorded the largest slump in rents of 16.2 per cent, while Brisbane and Adelaide figures fell slightly.
There were small rent rises in Sydney (albeit its weakest growth on record), Melbourne and Canberra, with Hobart reporting the strongest growth of 4.6 per cent.
The median weekly rent for the capital cities is $484, with Perth coming in below that at $431.
Corelogic research analyst Cameron Kusher said the rental market weakness would continue.
“With housing supply, and subsequently rental supply, continuing to rise as growth in wages and the population continues to slow, it is unlikely we will see a turnaround in rental markets in the short-term,” he said.
“As a result, renters will continue to have more choice and may actually be able to move into superior rental accommodation for similar or even lower costs.
“Lower rents may also act as a disincentive for first home buyers to enter into home ownership as they may be able to save more for a future deposit.”