Property Property Insider
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CPI figures offer good news for renters The June 2018 quarter CPI figures released by the Australian Bureau of Statistics (ABS) today continue to offer good news for renters, according to the Real Estate Institute of Australia (REIA).
latest figures showing that the increase in rental stock through increased investment in housing has kept growth in rents lower than they have been historically.
‘The All Groups CPI increased by 0.4 per cent in the June quarter – the same as for the previous quarter – giving an annual increase of 1.9 per cent,’ REIA president Malcolm Gunning said. ‘The quarterly increase is below the increase of 0.6 per cent in the two preceding quarters. ‘The annual changes for the analytical series of trimmed mean and for the weighted median were both 1.9 per cent. The annual changes in the two analytical series have been below the RBA’s target zone of 2–3 per cent for the past ten quarters and suggest the continuation of historically low interest rates for some time yet. ‘The Housing Group increased by 0.2 per cent for the quarter and 3.1 per cent for the year to June 2018. The major increases in the Housing Group for the year were electricity (up 10.4 per cent) and gas and other household fuels
‘For home buyers the latest inflation data together with a cooling in the housing market would suggest the RBA will hold official interest rates stable for 2018.
‘Rents remained unchanged for the quarter and increased by just 0.6 per cent for the year. For the last ten quarters the average annual change has been less than 1.0 per cent.
‘While official interest rates are likely to remain stable, we are seeing pressure mounting on banks to increase mortgage rates. This, together with the extremely cautious approach currently being taken by lenders, means higher borrowing costs and runs the risk of hampering economic growth.’
‘The CPI is good news for renters with the
Sydney slowing; regional areas vary
(up 7.1 per cent).
The Real Estate Institute of NSW’s (REINSW) research into the Sydney rental market indicates it has slowed, backing up the REIA’s take on the effect of the CPI figures. REINSW deputy president Brett Hunter says the June 2018 REINSW Vacancy Rate Survey saw a general increase in vacancy rates across the Sydney metropolitan area. ‘The Sydney vacancy rate rose 0.3 percentage points with rises of 0.4 percentage points in both inner and middle Sydney, at 3.0 per cent and 2.8 per cent respectively, while outer Sydney remained steady at 2.4 per cent. ‘Agents reported fewer enquiries coming through owing to the approach of the winter season,’ Mr Hunter continues. In the Hunter, vacancy rates rose 0.3 percentage points to 1.9 per cent, led by Newcastle which rebounded 0.5 percentage points to 2.4 per cent. The Illawarra gained 0.1 percentage points to 2.5 per cent with Wollongong increasing 0.2 percentage points to 2.3 per cent. Across regional areas, the central coast fell 0.1 percentage points at 2.0 per cent, northern rivers added 0.2 percentage points to 1.5 per cent and New England gained 0.4 percentage points to 2.3 per cent.
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The Byron Shire Echo August 1, 2018 15