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The impacts of COVID-19 for Australians and businesses operating are continuing to unfold in front of us.
With the Australian housing market very much in unchartered territory, the changes surrounding it have caused further impacts to rental returns.
On a national scale, rent values decreased 0.3% for the month of June, and 0.5% over the quarter. The largest quarterly fall in rents since September 2018, further decreases could be possible following the current economic trends of the market.
Australia’s capital city rents have, due to COVID-19, been directly impacted by current negative economic conditions. Rents fell 0.7% for the June quarter, compared with a 0.2% rise in rents in regional Australia.
The New South Wales capital currently has a median rent of $609 for houses which produce a yield of 2.7%. This is down from 3.2% 12 months ago.
Units in Sydney are producing rents of $536 a week and have yields of 3.4% for property investors. This is also down from 12 months ago by 0.6%.
Melbourne has also seen a drop in median rents for both houses and units.
With a current median rent of $460, offering a yield of 2.8%, houses in Melbourne are down for the month and quarter by 0.3%. Rental yields for houses are down 0.5% when compared to 12 months ago.
Units currently see a median rent of $446, down 1.1% for the month of June and 2% for the quarter. Yields currently sit at 3.9%, down from 4.5% 12 months ago.
Current restrictions in Victoria have obviously impacted the ability to deliver some aspects of property management service, including holding open inspections and routine inspections in person. Many services can still be performed though.
The Brisbane rental market currently sees a median rent of $460 for houses and $398 for units, respectively.
Though they have both seen negative quarterly change on rent amounts, houses are up when compared to the previous year by 1.1%.
House and unit rental yields have fallen 0.2% and 0.3% respectively when compared to 12 months ago.
Please note this information is an average. Each individual suburb will be affected by the current difficult conditions at different levels for both rental yields and rent amount. Therefore, take these stats as rough guides and not specific to your investment.
We will keep you updated as we get a clearer picture of what the coming months will look like for property investors.
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