Good news for renters! Darwin, Perth, Brisbane and Adelaide rental growth declines

By Rebeccah Elley ·

There’s been a longstanding debate in the property world - to buy or rent. Recent research from CoreLogic RP Data might make the latter more appealing, as growth in the rental market has declined over the past twelve months in the cities of Darwin (-13.40%), Perth (-8.6%), Brisbane (-0.7%) and Adelaide (-0.4%).

However, renters in Sydney and Melbourne haven’t fared so well, with the data showing an increase of 1.4% and 2.1% respectively. 

RELATED: Investors beware: Government proposal could slash your negative gearing concessions

Overall, this is the weakest rental market conditions seen by CoreLogic RP Data since its rental series began in 1996.

“In fact there hasn’t previously been a twelve month period when rents didn’t rise across our combined capitals index,” CoreLogic RP Data head of research Tim Lawless said.

“With dwelling values rising substantially more than rents in Sydney and Melbourne, this ongoing effect has created a compression in gross rental yields to the extent that gross yields in these cities are now only marginally higher than record lows.”

The rate of investor borrowing has also fallen, which Lawless explained could be attributed to several factors, including higher mortgage rates for investment loans, stricter lending criteria and the low rental yield environment.

While the data showed a significant dip in rental yields across many of Australia’s major cities over the past 12 months, Lawless said we are still yet to have a proper gauge “on how the overall housing market is performing in the New Year.”

He also reminded investors, that January is typically a quiet month across the housing market.

“Additionally, while the number of auctions won’t return to normal until early February, the weighted average auction clearance rate across the capital cities over the final weekend of January was 61.6%; higher than what was recorded during December when the weighted average clearance rate was between 57% and 59% from week to week."

Are you an investor looking for a home loan to fund your next property purchase? Then make our investment hub your next stop - the best place to compare deals by the interest rate, fees and features.

Home loan comparisons on Mozo - last updated January 16, 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.

I want to borrow


  • 1.99% p.a.variable for 12 months and then 2.48% p.a. variable

    2.47% p.a.

  • mozo-experts-choice-2020

    2.34% p.a. variable

    2.34% p.a.

  • mozo-experts-choice-2020

    2.19% p.a. variable

    2.19% p.a.

  • 2.04% p.a.
    fixed 2 years

    2.79% p.a.

  • 2.09% p.a.
    fixed 2 years

    2.56% p.a.


Talk to a Mozo home loans expert

Buying your first home, refinancing your existing home or thinking of investing? Speak to Steve, our home loans expert today!

^See information about the Mozo Experts Choice Home Loans Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.