<p data-end="211" data-start="96">National developer Time &amp; Place appears to have settled on a design for its long-anticipated Potts Point project.</p>

<p data-end="430" data-start="213">After several years of back and forth with local council and the NSW Government, the developer, which has spent close to a decade targeting the former The Chimes site on Macleay Street, has now progressed its plans.</p>

<p data-end="645" data-start="432">Following a concept design submission last year by SJB, Time &amp; Place has lodged a full State Significant Development Application with the NSW Government, this time for a scheme designed by Kerry Hill Architects.</p>

<p data-end="645" data-start="432"><img alt="Time &amp; Place" data-entity-type="file" data-entity-uuid="504d2a27-d65f-4227-8189-1e35e3376e62" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-20%20at%209.38.24%E2%80%AFAM.png?VersionId=_XqFKATYHF30KnVByPxhaI9UBzmkmfn7" /></p>

<p data-end="801" data-start="647">The 16-storey proposal includes 44 apartments, 21 of which will be build-to-sell. These will comprise 19 three-bedroom apartments and two four-bedroom penthouses.</p>

<p data-end="984" data-start="803">More than 50 per cent of the development will be dedicated to affordable housing, with 23 one- and two-bedroom apartments delivered in line with the NSW Government’s Housing SEPP.</p>

<p data-end="1068" data-start="986">Kerry Hill Architects said the proposal is driven by a strong response to place.</p>

<p data-end="1224" data-start="1070">“Our proposal for a new residential building for Potts Point in Sydney is driven by a deep consideration of place,” the practice said in its submission.</p>

<p data-end="1630" data-start="1226">“This operates on multiple levels, including a landscape approach that reinstates endemic flora of the Sydney peninsula and provides a ground-floor garden for residents, reconnecting the site to its pre-European history. A brick podium further strengthens this relationship to context, integrating planting and fine bronze detailing that references the predominant material language of Macleay Street.”</p>

<p data-end="1898" data-start="1632">The three-level podium will be topped by a communal resident space, featuring a covered pool designed to receive direct afternoon sun in winter, a neighbouring reflection pool, dining and event areas oriented to maximise sunset views, and an outdoor exercise zone.</p>

<p data-end="1898" data-start="1632"><img alt="Time &amp; Place" data-entity-type="file" data-entity-uuid="8d3eedc1-babb-44a3-bd96-d8a42f3adf1f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-20%20at%209.37.48%E2%80%AFAM.png?VersionId=Ii7.4dvqNatu5GQi6bhqNjAswrMB998." /></p>

<p data-end="2132" data-start="1900">The design also incorporates highly crafted shopfronts and a clearly defined residential entry to activate the street. Juliette balconies to the podium residences will provide passive surveillance and a strong sense of habitation.</p>

<p data-end="2225" data-start="2134">Above, the larger apartments are housed within a light-coloured masonry and bronze tower.</p>

<p data-end="2469" data-start="2227">“The tower steps back in a series of gently curved volumes that reference the rich Art Deco context of Macleay Street,” the architects said. “Carefully calibrated vertical fins frame the views while providing privacy and a sense of refuge.”</p>

<p><img alt="Time &amp; Place" data-entity-type="file" data-entity-uuid="6fab60f4-3140-4469-b47a-48c781e0a30b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-20%20at%209.28.44%E2%80%AFAM.png?VersionId=e5XxrM3kzdASdKlcIACHAHbOSZhSKC9O" /></p>

<p>Time &amp; Place has been one of the most active developers nationally in the last 12 to 24 months. Late last year they completed&nbsp;The Queensbridge in&nbsp;<a href="https://www.apartments.com.au/developments/southbank-vic-3006">Southbank</a>, a mixed-use tower with 353 apartments and a hotel. They are currently selling Park Modern, 246 apartments near the famous Botanic Gardens in South Melbourne.</p>

<p data-end="987" data-start="610">The developer has approval for The Burke, a mixed-use project in&nbsp;<a href="https://www.apartments.com.au/new-apartments/glen-iris-vic-3146">Glen Iris</a>&nbsp;being delivered in partnership with Woolworths. The 60 apartments, positioned above a new Woolworths supermarket, are expected to launch in the coming months. Time &amp; Place is also progressing plans for the redevelopment of&nbsp;<a href="https://www.apartments.com.au/developments/northcote-vic-3070">Northcote</a>&nbsp;Plaza, and have recently submitted plans for a <a href="https://www.apartments.com.au/news/vic/time-place-unveils-plans-22-storey-south-melbourne-tower">22-storey tower</a>, another in South Melbourne.</p>

<p data-end="1377" data-start="989">In&nbsp;<a href="https://www.apartments.com.au/developments/sydney-nsw">Sydney</a>, the developer has two projects in Manly: Two Tides, which is currently under construction, and an ultra high-end building on&nbsp;<a href="https://www.apartments.com.au/buildings/shoreline-manly-beach-89-90-north-steyne-manly">North Steyne</a>, fronting the beach. It is also continuing to work through the redevelopment of The Chimes building on Macleay Street in&nbsp;<a href="https://www.apartments.com.au/developments/potts-point-nsw-2011">Potts Point</a>, as well as Marlborough House, the redevelopment of the original David Jones warehouse building in&nbsp;<a href="https://www.apartments.com.au/developments/surry-hills-nsw-2010">Surry Hills</a>.</p>


Joel Robinson

First look: Time & Place settles on design for The Chimes, Potts Point redevelopment

<p><a href="https://www.apartments.com.au/developers/develotek">Develotek</a> is joining the likes of TOGA, Deicorp, and One Global Capital, betting on a boom in Five Dock ahead of the 2032 mooted opening of the Five Dock Metro Station.</p>

<p>Develotek, which is currently developing Bianca on the Drummoyne waterfront and has plans approved for a tower in Chatswood, has filed a State Significant Development Application for a <a href="https://www.apartments.com.au/new-apartments/79-81-queens-road-five-dock-nsw-2046">two-building project in the evolving Kings Bay precinct</a>.</p>

<p>The buildings, one more boutique just five storeys and the other 26 storeys, will rise from an 3,158 sqm site across&nbsp;79–81 Queens Road and 2–8 Spencer Street, will home 134 one-, two-, and three-bedroom apartments, above ground-floor retail and five basement levels of parking.</p>

<p>A key component of the proposal is the inclusion of 15 per cent of residential floor space as in-fill affordable housing, unlocking additional height and density under the Housing SEPP.</p>

<p><img alt="First Look: Develotek lodges State Significant shop top housing project in Five Dock precinct" data-entity-type="file" data-entity-uuid="3ee31bf7-75ba-4bc5-b190-49885193219f" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/podium_2.png?VersionId=730UbrduuwK3C1sO28RHjiLPUPqXqjkh" /></p>

<p>Designed by <a href="https://www.apartments.com.au/architects/plus-studio">Plus Studio</a>, the scheme adopts a podium-and-tower configuration, with a five-storey street wall along Queens Road transitioning to a 26-storey tower set deeper into the site. The ground plane prioritises activation and permeability, with retail frontages and a new through-site link connecting Queens Road to Spencer Street.</p>

<p>At the upper levels, the tower façade has been conceived using a modular system to support prefabrication and reduce construction waste, while improving build efficiency. The splayed form draws on the geometry of surrounding industrial rooftops, reinterpreting the area’s heritage in a contemporary expression while also helping to reduce solar heat gain to east and west-facing apartments.</p>

<p>“This project aspires to transform a former industrial site into a connected, resilient and people-focused urban community, grounded in Country, shaped by history, and designed to enrich everyday life within the evolving Kings Bay Precinct,” said John Walsh, Principal at Plus Studio.</p>

<p>The proposal reflects the broader transformation of the Kings Bay Precinct under the Parramatta Road Corridor Urban Transformation Strategy, marking a shift from its industrial past to a higher-density, mixed-use urban neighbourhood.</p>

<p><img alt="First Look: Develotek lodges State Significant shop top housing project in Five Dock precinct" data-entity-type="file" data-entity-uuid="abde734c-1e31-4a97-a1d2-fa9bcf31c380" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/building%20podium.png?VersionId=fNUupP6u146yEytQT31kKVRxwtACgPpP" /></p>

<p>Develotek is emerging as an active participant in the state’s affordable housing-led uplift pathway. The developer recently secured approval for a 34-storey mixed-use tower in Chatswood, where it similarly leveraged the in-fill affordable housing provisions to increase scale and deliver a 101-unit scheme with dedicated affordable apartments.</p>

<p>Their entry into Five Dock places them alongside a growing list of developers targeting the suburb ahead of its anticipated transport uplift, with Sydney Metro set to extend into the area. Major players including TOGA, Deicorp, and One Global Capital are all progressing large-scale precinct-style developments nearby, collectively reshaping the low-rise industrial fabric into a higher-density mixed-use corridor.</p>

<p>The Five Dock site sits within the Kings Bay Precinct, a key renewal area under the Parramatta Road Corridor Urban Transformation Strategy, where planning controls support significant uplift tied to affordable housing delivery. The consolidated 3,158 sqm site is currently occupied by low-rise industrial uses, including warehouses and vehicle workshops, earmarked for transition.</p>


First Look: Develotek joins in Five Dock apartment boom

<p data-end="132" data-start="47">Ascot’s Racecourse Road continues to be a hive of activity for Brisbane developers.</p>

<p data-end="359" data-start="134">Following Fortis and GRAYA, which are both preparing new projects along the key strip connecting Kingsford Smith Drive and Eagle Farm Racecourse, local developer <a href="https://www.apartments.com.au/developers/skyhold">Skyhold</a> is the latest to lodge plans for its own development.</p>

<p data-end="510" data-start="361">The group is proposing One One Two Residences, a boutique project comprising just seven apartments, named after its address at 112 Racecourse Road.</p>

<p>The proposal outlines a five-storey building on an 810 sqm site. The built form slightly exceeds the four-storey expectation under the neighbourhood plan, aligning instead with the emerging character of the strip. As the planning report notes, “the locality is characterised by a transition toward medium-rise residential development, with a number of recent developments… above the stipulated height limits.”</p>

<p><img alt="First Look: Skyhold lodges plans for boutique Ascot apartments as Racecourse Road revival gathers pace" data-entity-type="file" data-entity-uuid="ec577631-8c51-4163-960e-e7b3a77d655b" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ascot.png?VersionId=iAzQ46D4Uu1UqiS0mVnlcy9jeFKBpJIj" /></p>

<p>Designed by 111 with landscape architecture by <a href="https://www.apartments.com.au/landscape-architect/paul-bangay-garden-design">Paul Bangay Studio</a>, the scheme adopts a layered architectural approach with strong articulation and a subtropical response. Deep balconies, integrated planters, and a mix of masonry and textured finishes define the façade, while upper-level setbacks reduce perceived bulk. The architectural statement describes “a series of horizontally expressed layers, defined by deep balconies and a consistent robust material palette,” aimed at delivering a refined streetscape presence.</p>

<p>Apartments are configured as large-format residences, including multiple three-bedroom layouts and a full-floor penthouse, supported by ground-level parking. A rooftop terrace will provide communal amenities including a pool and landscaped recreation areas. The design prioritises privacy, natural ventilation, and greenery, with planting integrated across all levels to soften the building form and contribute to the public realm.</p>

<p><img alt="First Look: Skyhold lodges plans for boutique Ascot apartments as Racecourse Road revival gathers pace" data-entity-type="file" data-entity-uuid="1e1219bd-b45a-4d7f-bbc7-7207d7b2fc94" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Ascot%20entry.png?VersionId=JIoUOLMgQ5xWpEF0etEI3ffIoIVjD7gO" /></p>

<p>The proposal sits within the Racecourse Road precinct, a key mixed-use spine in Ascot that continues to attract renewed development interest.</p>

<p>Later this year national developer Fortis will launch its own boutique development, which, pending council approvals, will be 16 apartments designed by Koichi Takada Architects, just down the street.</p>

<p>“Racecourse Road is going through a massive revitalisation and we’re proud to be a part of that transformation,” said Fortis's QLD General Manager, Dan Boman.</p>

<p>Nearby, GRAYA is advancing its larger-scale The Gallery, a mixed-use shop-top housing project designed to act as a “catalytic project for Racecourse Road.”</p>


First Look: Racecourse Road, Hamilton revitalization to continue as Skyhold joins the party

<p>Twenty-five years after launching one of Australia’s most visionary and successful masterplanned beach communities - Casuarina on the Northern NSW Tweed Coast - developer Consolidated Properties Group has unveiled plans for an $800 million sister project located 10 kilometres south, at Cudgera Creek near the coastal town of Pottsville.</p>

<p>CPG has taken the wraps off Caldera, a 78-hectare masterplanned village that builds on the legacy of Casuarina and aims to help address Northern NSW’s coastal housing shortage via the delivery of 550 homes built in a sustainable manner and addressing affordability and housing diversity, while also focusing on architectural and ecological merit.</p>

<p>Caldera is being brought to life by the same creative team that delivered Casuarina, led by Consolidated Properties CEO and chairman Don O’Rorke, Hutchinson Builders chairman Scott Hutchinson and renowned urban designer Brian Toyota, of architectural practice Bureau Proberts.</p>

<p>CPG has lodged a rezoning application with Tweed Shire Council for the Caldera site, which has been designated since 1991 as the Dunloe Park Urban Release Area, the final land release area within the Pottsville locality and one of only four remaining growth areas along the entire Tweed coastal strip. Preliminary plans for Caldera feature a 13-hectare retail and commercial precinct at the core of the village, surrounded by meticulously planned residential areas comprising around 550 homesites.</p>

<p>The retail hub will be anchored by a Coles Supermarket and will offer 7000 sqm of retail and 23 commercial lots designed to serve the local community and bring together curated shopping, dining, gym, wellness, childcare, medical and other essential services.</p>

<p><img alt="Cons prop" data-entity-type="file" data-entity-uuid="fca7dc71-4b71-45b1-bb04-5a60bd7158d0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-20%20at%208.34.04%E2%80%AFAM.png?VersionId=vAKwIvLuwmTKj6blHJRYIEeXS_8lCgUx" /></p>

<p>The project will create more than 1500 jobs over its development cycle, according to its economic modelling, and significantly address the shortage of employment land in the Tweed.</p>

<p>The residential areas will encourage a sense of community via a cohesive urban design that encourages walking, cycling, enhanced resident connectivity and reduced reliance on cars via bike paths and pedestrian-friendly streets.</p>

<p>Homesites will include a range of options from premium ridge-top homes to affordable housing options, ensuring a community that is inclusive of different income levels and designed to appeal to a wide demographic from baby boomers to families, singles and professionals. Architectural and planting covenants on home building will support the village’s built form and protect its character.</p>

<p>O’Rorke says CPG intends Caldera to be a model project delivered efficiently in a dedicated urban release area and ‘very much for this region and for this time’.</p>

<p>“Our vision for Caldera is to create a modern coastal village with its own unique northern NSW identity,” he said.</p>

<p>“Building on our legacy of Casuarina, 25 years on, this new village is designed to stand apart, offering the future of modern living, balancing the natural beauty of the region with contemporary amenities and convenience.</p>

<p>“Caldera will be more than just a place to live - it will be a welcoming, inclusive coastal village neighbouring Pottsville that invites visitors and embraces new residents. With its strong ties to the land, vibrant lifestyle and sense of place, Caldera will set a new standard for village living in Northern NSW.”</p>

<p><img alt="CPG" data-entity-type="file" data-entity-uuid="9a5a7cf4-5f76-4ddf-bd05-c8fb77d0a787" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-04-20%20at%208.33.59%E2%80%AFAM.png?VersionId=J1CzCGD7kE7fcAMd41V4pKAf_sI4L5Jv" /></p>

<p>The project’s centrepiece is environmental sustainability, with comprehensive wetlands protection measures and planting of native trees, parklands, village greens and communal grounds to enhance the natural beauty of the area.</p>

<p>CPG will also deliver a developer-funded wastewater treatment plant to ensure zero ocean outflows and provide high quality long-term infrastructure for Tweed Shire.</p>

<p>A key focus is wildlife management planning, including extensive conservation controls for the West Pottsville koala population, aligned with Tweed Shire Council’s Koala Plan of Management and designed to enhance koala habitat connectivity and future population growth.</p>

<p>Caldera will extend the existing koala corridor by connecting koala precincts west of the Pacific Highway with populations in the north and east precincts. A koala underpass will be created under Pottsville Road to complete the connection of this important corridor. Native tree plantings will expand essential koala food sources, while approximately eight kilometres of exclusion fencing will be constructed to safeguard the koalas from urban threats.</p>

<p>The Caldera site is nestled in the hills of Cudgera Creek and benefits from its rich natural surroundings including the Pottsville Wetland, Cudgera Creek Nature Reserve and nearby Pottsville Beach.</p>

<p>It takes its name from the surrounding Tweed Shield Volcano and Caldera, the vast bowl-shaped depression stretching from Byron Bay to the Queensland border that 20 million years ago was the world’s largest shield volcano and which has shaped the region’s striking landscape, with Mount Warning standing as one of its most iconic features.</p>

<p>The development is a joint venture between CPG and Pottsville Development Corporation, which made its first investment in Pottsville more than 45 years ago and is the developer of Black Rocks By the Sea, a masterplanned community now part of the fabric of Pottsville and which was the catalyst for the construction of a bridge across the Pottsville Estuary, providing direct access to the beach.</p>

<p>CPG’s $1.5 billion Casuarina Beach township, 10 kilometres to the north of Caldera, commenced construction in 2000 and has become the model for modern Australian, eco-sensitive beachside development.</p>


Consolidated Properties unveils $800m coastal village Caldera in Casuarina

<p data-end="184" data-start="92">Growing national developer Time &amp; Place has announced its fifth new apartment development.</p>

<p data-end="408" data-start="186">With two projects in Manly and two upcoming in Surry Hills and Potts Point, the developer, which expanded beyond Melbourne just a few years ago, is now heading to Mosman. It is planning 53 new apartments on Redan Street.</p>

<p data-end="553" data-start="410">The 3,233 sqm site, spanning <a href="https://www.apartments.com.au/new-apartments/40-48-redan-street-mosman-nsw-2088">40–48 Redan Street</a> with frontage to Redan Lane, is located just under 400 metres from Spit Junction Town Centre. It is reported the developer paid around $100 million for the five-site amalgamation.</p>

<p data-end="762" data-start="555">Time &amp; Place, founded by Tim Price and backed by James Packer’s private investment firm NPACT, has submitted the project as a State Significant Development through the NSW Government’s Housing Delivery Authority pathway.</p>

<p data-end="918" data-start="764">Of the 53 apartments, 42 will be released to the market, with the remaining 11 allocated as affordable housing in line with NSW Government requirements.</p>

<p data-end="1241" data-start="920">fjc Studio has designed the building. In its Design Report, the architect said the diverse mix of dwelling types and sizes, including 11 two-bedroom affordable housing units, 40 three-bedroom apartments, and two four-bedroom residences, will support a broad demographic, including families, downsizers, and key workers.</p>

<p data-end="1519" data-start="1243">The development will rise to nine levels, a height encouraged by the NSW Government due to the site’s proximity to Spit Junction, which has been identified as a low- to mid-rise centre. Developments within a certain proximity to these centres are permitted increased height.</p>

<p data-end="1830" data-start="1521">fjc said the project “achieves an appropriate density outcome for its setting by balancing increased housing supply with strong amenity performance,” adding that it “makes a measurable contribution to NSW housing supply targets through the delivery of additional dwellings and dedicated affordable housing.”</p>

<p data-end="1898" data-start="1832">The new development will replace five existing two-storey homes.</p>

<p data-end="2218" data-start="1900">“By aligning with the objectives of the Housing SEPP and applying careful architectural and urban design principles, the development provides high-quality residential accommodation that integrates sensitively within its established Mosman context and delivers enduring benefits to residents and the wider community.”</p>

<p data-end="2293" data-start="2220">Mosman has become increasingly popular with developers in recent years.</p>

<p data-end="2616" data-start="2295">Developer Abadeen has been particularly active, with Mosman Residences currently on the market and under construction on Clifford Street. It also has an upcoming Burran Avenue project, comprising just three apartments on the Balmoral Slopes, and recently secured the Midas and Honeysuckle nursery site on Military Road.</p>

<p data-end="2729" data-start="2618">Prosker Property has a project on Redan Lane, just a few doors down from Time &amp; Place’s proposed development.</p>

<p data-end="2948" data-start="2731">Developers including Toohey Miller, DARE Property Group, and WINIM also have projects underway in the area. In 2024, a five-year target was set for the Mosman LGA to increase housing supply by 500 dwellings by 2029.</p>

<p>Time &amp; Place entered the Sydney market with Two Tides, its under construction Manly development. Given its sales success, it has secured another development in the area, more boutique, facing the beach on North Steyne.</p>

<p>They are hoping to launch their redevelopment of The Chimes in Potts Point this year, and next year will look to take to market Marlborough House, an adaptive re-use of the landmark David Jones warehouse in Surry Hills.</p>


Time & Place to take on Mosman apartment market

Rental Growth

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<p>2015 was a lacklustre year for rental growth in Australia with rents increasing by just 0.3% in 2015; not exactly the news investors are looking to read about but good news for those looking to rent.</p>
<p>We’ve never seen rental growth as sluggish as it is at the moment. Furthermore, we’re expecting to see more of the same over the coming months due to increases in the supply of new housing, rental stock and a further slowdown in migration rates. </p>
<p>The only cities to see an increase in weekly rental rates were Sydney with an increase of 1.9 percent, Melbourne (2.2 percent), Hobart (0.6 percent) and Canberra (1.9 percent) while rates fell in Brisbane by (-0.3 percent), Adelaide (-0.2 percent), Perth (-8.0 percent) and Darwin (-13.3 percent). <span style="line-height: 1.3em;"> </span></p>
<p>A comparison between December 2015 and December 2014 shows in 2014 annual rental growth was slowing but was tracking at a much higher 1.8% which highlights just how much the rental market eased throughout 2015. </p>
<p><a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.21.53%20AM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.21.53%20AM.png" alt=""></p>
<p>The construction boom across the capital cities, coupled with slowing population growth, low mortgage rates and the recent heightened level of activity from investors are the major contributing factors to the slowing rental growth in 2015.</p>
<p>Although Sydney and Melbourne saw the largest ramp up in new housing supply, both cities still recorded rental increases over the year, although rental growth is slowing relative to 12 months earlier.</p>
<p>It is clear that the increase in investment stock continues to provide landlords with little scope to lift rental rates while the low mortgage rate environment provides little incentive to push yields higher.</p>
<p>We envisage that growth in rental rates is likely to remain weak or potentially slow even further over the coming months. The good news for those looking to rent is the possibility <span style="line-height: 1.3em;">that rental rates will fall even further over the coming year.</span></p>
<p><span style="line-height: 1.3em;">While the news for renters will be welcomed, investors may be facing weaker capital gains coupled with little in the way of rental growth or yield.</span></p>
<p>The large pipeline of residential construction activity and recent high levels of investment demand means that renters are likely to continue to have plenty of choice.</p>
<p><a href="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.15.47%20AM.png" target="_blank">Click to enlarge</a></p>
<p><em><strong><img src="/images/2016/01/12/Screen%20Shot%202016-01-12%20at%209.15.47%20AM.png" alt=""></strong></em></p>
<p><em><strong> </strong></em></p>
<p><em><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.</em></em></p>
</body></html>

ckusher-ujnxiKuFQs

Annual national rental growth lowest on record for landlords: Cameron Kusher

<html><body>
<p><span style="line-height: 1.3em;">Rental yields across the combined capital cities have gradually trended lower over the past two decades and currently sit at record-low levels. </span></p>
<p><span style="line-height: 1.3em;">The change in rental rates have also seen a slowdown in recent years which has culminated in no change in rents over the past year. This represents a historically weak market for rental growth. </span></p>
<p>Looking at rental growth over the past decade, across the combined capital cities rental rates increased by 50.7 percent over the period, or 4.2 percent per annum. This is a lower level of increase than home values which have increased by 72.0 percent (5.6 percent per annum) over the same period. A split by property types, shows there hasn’t been a substantial difference in performance, with house rents increasing by 50.3 percent compared to a 53.7 percent rise in unit rents. </p>
<p>By breaking out the results across the individual capital cities and looking at the total rental change over the past decade, these show that Sydney (+59.4 percent) and Perth (54.6 percent) have seen significantly greater increases in rents than all other capital cities. </p>
<p><a href="/images/2016/02/23/Screen%20Shot%202016-02-23%20at%204.18.39%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/23/Screen%20Shot%202016-02-23%20at%204.18.39%20PM.png" alt="" width="826" height="757"></p>
<p>Although rental growth has been strong in some cities, in most instances home value growth has outpaced rental growth over the past decade. The exceptions have been Hobart and Perth where rental increases have outstripped value growth, pushing yields higher over the decade, and Brisbane where value growth and rental growth have each been recorded at 44.0 percent over the decade.</p>
<p>The other side of the rental growth equation is of course gross rental yields which highlight the expected annual <span style="line-height: 1.3em;">rental return on an investment property. There are a few points that should be highlighted, they are based on the home value so no consideration is given to borrowings nor are there allowances for costs. Furthermore, the calculation assumes that there is no vacancy, which in the current environment is becoming somewhat more difficult to achieve. </span></p>
<p>Over the past 10 years there has been little overall change in gross rental yields across the capital cities. Although capital city rental yields are now at an historic low of 3.5 percent the shift from 4.0 percent 10 years ago has been relatively minimal. Perth and Hobart are the only cities in which yields are now higher than they were 10 years ago while in Brisbane they are unchanged over the period.</p>
<p>Melbourne and Darwin have seen the greatest softening in gross rental yields over the past decade. Melbourne, where gross yields are the lowest of any capital city, have slipped from 4.2 percent ten years ago to 2.9 percent currently. </p>
<p>With rental rates falling and yields sitting at record low levels at a time when housing construction is at its highest level on record it is reasonable to expect that rents and yields will slip further over the coming years. </p>
<p>Of course we have recently seen the Labor opposition propose changes to negative gearing and the capital gains tax discount. Were policies such as these to be implemented it could change the situation for investors. Whereas over recent years their focus has clearly been on value growth, attention could begin to become more balanced w<span style="line-height: 1.3em;">here investors place a higher degree importance on the yield profile and potential for positive cash flow.</span></p>
<p><a href="/images/2016/02/23/Screen%20Shot%202016-02-23%20at%204.20.11%20PM.png" target="_blank">Click to enlarge</a></p>
<p><img src="/images/2016/02/23/Screen%20Shot%202016-02-23%20at%204.20.11%20PM.png" alt="" width="823" height="377"></p>
<p><em>Cameron Kusher is research analyst for CoreLogic RP Data. You can contact him <a href="https://blog.corelogic.com.au/about/" target="_blank">here</a>.</em></p>
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Housing rents slower to increase than home values: Cameron Kusher

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<div id="post-body-651116980849945678" class="post-body entry-content">
<div>There are still a great many property investors around in the market right now, so there shouldn't be too much upwards pressure on rents at the national level.</div>
<div> </div>
<div>And, so it is!</div>
<div> </div>
<div>The weighted average annual rents inflation across Australia's eight capital cities steadied at +0.7 per cent in the third quarter of calendar year 2016, according to the ABS Consumer Price Index figures. </div>
<div> </div>
<div>As you can clearly see in the chart below, nominal rental prices at the national level only tend to spike dramatically when property investors are spooked out of the market for some reason, thereby stymying the available supply of rental stock.</div>
<div> </div>
<div>This has only happened twice over the past 35 years or so, with the most recent trigger point being the global financial crisis. </div>
<div> </div>
<div>However, with mortgage rates close to their record lows, there are presently oodles of investors in the domestic market - and many more from overseas too! - even in the face of recent curbs. </div>
<div> </div>
<div><a href="/images/2016/10/28/pete1.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="/images/2016/10/28/pete1.jpg" alt=""></div>
<br><div>
<strong><span style="text-decoration: underline;">City by city</span></strong><br><strong><span style="text-decoration: underline;"><br></span></strong>
</div>
<div>Of course, the outlook is as always quite different for each capital city, region, and sub-region.<br><br>
</div>
<div>I have presented a second chart below as an index to show what has happened to nominal rents over the last four-and-a-half decades.</div>
<div> </div>
<div>One of the reasons I have done so is that although commentators seemingly love to spin out 'inflation-adjusted' results, the reality for many of us living today is that we often have 'rent versus buy' equations to weigh up, and for these decisions we understandably - and logically - tend to think in nominal terms.<br><br>"Are rents rising? Are dwelling prices rising? What about holding costs? Will mortgage rates increase or decrease? What is the smartest financial decision here?"</div>
<div> </div>
<div>In Sydney, annual rents inflation accelerated slightly to +2.5 per cent, which is still close to double the +1.3 per cent headline rate of inflation.</div>
<div>
<br>Blogsites and media do love a good falling rents meme, but this hasn't really been backed up by the facts, at least in Sydney's case.<br><br>Indeed, Sydney rents have increased at double the rate of inflation for nearly a decade now.<br><br>
</div>
<div>Since the beginning of 2007 Sydney's rental index has increased by +54 per cent, exactly double the rate of inflation for the harbour city over the same time horizon. </div>
<div> </div>
<div>Rental growth may be softer than it was, and in fact it is already easing in some pockets of Sydney, but rents have hardly 'fallen' since the financial crisis as commentary sometimes tries to imply.</div>
<div> </div>
<div>It's a very different Jackanory in the resources capitals, mind you.<br><br>After a great surge in both rents and dwelling prices through the heady days of the resources boom, the rental index numbers are in full on decline mode in Perth, falling back by -6.4 per cent over the year to September.<br><br>This puts the rental index for Perth back close to where it was at the peak of the mining boom four years ago in Q3 2012.<br><br><div><span>And in Darwin, the equivalent year-on-year decline has been -7.7 per cent, although certain other metrics have implied that the real estate market in the Top End may be stabilising somewhat. </span></div>
<div><span> </span></div>
<div><a href="/images/2016/10/28/Screen%20Shot%202016-10-28%20at%208.51.32%20AM.png" target="_blank"><span>Click to enlarge</span></a></div>
<div><span> </span></div>
</div>
<div><img src="/images/2016/10/28/Screen%20Shot%202016-10-28%20at%208.51.32%20AM.png" alt=""></div>
<br><div>Rental growth is flat on this index in Canberra, while interestingly the rental growth index for Adelaide has by and large tracked that of Melbourne closely for almost the entire data series since 1972. You learn something new every day!</div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Supply response cavalry now arriving</span></strong></div>
<br><div>The chart above hints at why Rory Robertson was always unlikely to lose his high profile 2008 bet cf. Sydney house prices correcting sharply.</div>
<div> </div>
<div>While the annual rate of population growth in New South Wales rose incessantly from 2004 to 2008 up to an annualised peak of nearly 118,000, very little accommodation was actually being built, and this has resulted in nearly a chronic supply shortage and nearly a decade of strong rents growth. </div>
<div> </div>
<div><a href="/images/2016/10/28/Screen%20Shot%202016-10-28%20at%208.52.55%20AM.png" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="/images/2016/10/28/Screen%20Shot%202016-10-28%20at%208.52.55%20AM.png" alt=""></div>
<div> </div>
<div>What you don't need any charts to tell you - just listen to the jackhammers! - is that this dynamic has at last changed, with dwelling construction at now really hitting its straps over the last couple of years, and a veritable flood of apartment completions in the post.<br><br>---<br><br>In other news, Domain reported that Sydney's median house price rose by +2.7 per cent in the September quarter to a fresh all-time high of $1,068,000.<br><br>In Melbourne, the median house price rose by an even more sprightly +3.1 per cent over the quarter and +9.1 per cent over the year to also hit a record high of $774,000.<br><br>Somewhat surprisingly, median unit prices in Melbourne performed even more strongly again in the quarter in rising by +4.5 percent, to be +5.5 percent higher over the year.<br><br>Melbourne has been constructing dwellings like fury in recent years, but population growth has accelerated to extraordinarily high levels as you can see in the chart above. </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
<div> </div>
</div>
<div class="post-footer"> </div>
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pwargent-M4siyDbqQY

Rental growth steadies, though not in Sydney

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<p>Rental growth was flat at just 0.6 percent over the year to March 2017, according to the ABS inflation figures.</p>
<p>This is the equal lowest annual percentage growth since 1994, largely reflecting the new supply of apartments hitting the capital cities on the east coast.</p>
<p><a href="https://www.propertyobserver.com.au/images/2017/04/27/A6.jpg" target="_blank">Click to enlarge </a></p>
<div id="post-body-3862946038801712568" class="post-body entry-content">
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/27/A6.jpg" alt=""></div>
<br><div>The national figure obscures contrasting fortunes around the capital cities.</div>
<div> </div>
<div>Sydney recorded annual growth in its rental CPI of 2.5 percent. </div>
<div> </div>
<div>In Melbourne rental price growth has been picking up over the past five quarters, although only to 1.7 percent year-on-year according to the ABS series (there has been considerably stronger growth in asking prices). </div>
<div> </div>
<div>Hobart recorded the fastest annual growth of the capital cities at 4.2 percent. </div>
<div> </div>
<div>In Canberra there has not been much to see in aggregate, but anecdotally there is a view that the annual land tax has turned investors away from houses leading to a shortage of detached rental stock (though as in most capitals there is clearly no shortage of new apartments, which has compensated tenants for now).</div>
<div> </div>
<div>In Darwin rents declined by 7.4 percent year-on-year, although this actually represents an improvement on the preceding quarter's drop.</div>
<div> </div>
<div>And in Perth, rents were down by 7.3 percent year-om-year, having now dropped by 12.1 percent from their peak. </div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/04/27/A4.jpg" target="_blank">Click to enlarge</a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/27/A4.jpg" alt=""></div>
<br><div>In Brisbane nominal rents remain positive, but there's no doubt that inner city apartments rents are set for a tumble, as evidenced by the "for lease" banners strewn around the inner city.</div>
<div> </div>
<div>This from yesterday...</div>
<br><div class="separator"><a href="https://3.bp.blogspot.com/-PotrGvJHDlc/WQDxsUvwVtI/AAAAAAAAjbQ/tUknpxnVbnQqjWV1PrKg-ApGxG14UBZPgCLcB/s1600/IMG_1655.JPG"><img src="https://3.bp.blogspot.com/-PotrGvJHDlc/WQDxsUvwVtI/AAAAAAAAjbQ/tUknpxnVbnQqjWV1PrKg-ApGxG14UBZPgCLcB/s640/IMG_1655.JPG" width="640" height="480"></a></div>
<br><strong><span style="text-decoration: underline;">Benign inflation</span></strong><br><div> </div>
<div>The above figures feed in to the benign inflation picture.</div>
<div> </div>
<div>Moreover, while dwelling construction is expected to remain strong for some time in Sydney, new apartment projects are now being shelved or scrapped practically by the week in Melbourne and Brisbane.</div>
<div> </div>
<div>As each new Brisbane apartment project completes this will leave a small hole in the economy, which cumulatively will act as a drag on growth.</div>
<div> </div>
<div>For this reason the government will be looking to loosen the purse strings to pave the way for infrastructure projects to plug the hole, which can be achieved through borrowing without unnecessarily crippling the budget.</div>
<div> </div>
<div>A final point, the Sydney market has seen rents outpace CPI by a factor of two over the past ten years to rise by 56 percent.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/04/27/A5.jpg" target="_blank">Click to enlarge </a></div>
<br><div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/04/27/A5.jpg" alt=""></div>
<br><div class="separator"> </div>
<div>This reflects that Sydney's construction boom was still addressing an inherent undersupply until recently, but stay alert because the balance is about to swing sharply in favour of tenants over the next couple of years. </div>
<div> </div>
<div>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
</div>
</div>
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Rental growth at two-decade low: Pete Wargent

<html><body>
<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">Rental trends are an important barometer of our major markets largely overlooked by mainstream media.</span></p>
<p class="p1"><span class="s1">Media regards changes in median prices and auction clearance rates in the big cities as the measures worth considering, but at Hotspotting we think movements in rents are equally important. They reveal a lot about the state of individual markets and they can serve as a precursor to what’s likely to happen with prices.</span></p>
<p class="p1"><span class="s1">History shows that an uplift in prices is often preceded by tight vacancies and strong rises in rentals. This occurred in Sydney in 2011 and 2012, ahead of the start of the price boom in 2013.</span></p>
<p class="p1"><span class="s1">Hobart, which has had a mini-boom in the past two years, first experienced a sharp decrease in residential vacancies and significant increases in rentals.</span></p>
<p class="p1"><span class="s1">Hobart still has the tightest vacancies in capital city Australia (well under 1%) and it continues to lead on rent increases. We have analysed new data from the two best sources on rental statistics, SQM Research and Domain, and both record strong annual rises for house rents (7.2% SQM and 9.8% Domain) in Hobart and even bigger increases for unit rents (11.6% and 12.9%).</span></p>
<p class="p1"><span class="s1">Perth is another standout. A year ago the vacancy rate for the WA capital was 4% but it has reduced steadily over the past 12 months and is now below 3%. Rents have responded, with houses up 4.5% (SQM) or 5.7% (Domain), and units up 4.9% (SQM) and 3.3% (Domain).</span></p>
<p class="p1"><span class="s1">If history repeats, this dramatic improvement in the rental market will be followed by uplift in prices, for the first time in five years (the latest SQM data suggests price trends are starting to improve in Perth).</span></p>
<p class="p1"><span class="s1">Adelaide too is producing solid rental growth. Both sources have house rents up about 2.6% in annual terms, and apartment rents rising around 3.3%. Adelaide vacancies are hovering around 1%.</span></p>
<p class="p1"><span class="s1">Brisbane, where vacancies have recently dropped below the 3% benchmark after several years of over-supply in apartment markets, is now producing moderate rental growth for both houses and apartments.</span></p>
<p class="p1"><span class="s1">Both sources agree that Canberra is producing solid growth in rents for apartments, up more than 4%, but Domain records no growth for house rents, while SQM says Canberra house rents have dropped about 2% in the past year. Canberra vacancies are trending higher but remain tight at 1.2%, according to SQM.</span></p>
<p class="p1"><span class="s1">Melbourne, where vacancies are generally low, has delivered minor growth in apartment rents, while house rents are largely unchanged.</span></p>
<p class="p1"><span class="s1">The two cities with the highest vacancies, Sydney and Darwin, are the only state and territory capitals where rents are significantly down.</span></p>
<p class="p1"><span class="s1">In Sydney, where vacancies are trending higher, houses rents are down about 5% in annual terms, while apartment rents have fallen around 4%.</span></p>
<p class="p1"><span class="s1">Darwin is showing signs of recovery with rents for houses, with vacancies better in the past year. But apartment rents have dropped 5%, according to both research sources.</span></p>
<p class="p1"><span class="s1">Overall, the situation is positive for vacancies and for rents. Sydney is the notable exception.</span></p>
<p class="p2"><span class="s1">The improvement in the rental situation for Perth, Adelaide and Brisbane suggests price growth is likely in the near future - especially when considered alongside other factors</span><span class="s2">.</span></p>
<p class="p2"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p2"><span class="s3"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p4"><span class="s1"><em>twitter.com/hotspotting</em></span></p>
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terryryder-YECXbqmri2

Rental trends an important barometer for property market strength: Hotspotting's Terry Ryder

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<p>EXPERT OBSERVER</p>
<p class="p1"><span class="s1">Media tends to measure markets by movements in median prices. But other measures of the health of major markets are worthy of attention, including sales volumes, vacancy rates and movements in rentals.</span></p>
<p class="p1"><span class="s1">Rental data is often a forward-looking marker of things to come with prices. Sydney had a couple of years of major rental growth, but little in the way of price growth, before embarking on its price boom from 2013 to 2017. Hobart recorded very low vacancies and the nation’s biggest rental growth before starting the mini-boom on prices that’s still occurring.</span></p>
<p class="p1"><span class="s1">So we should keep a close eye on what’s happening with vacancies and rents in the major cities.</span></p>
<p class="p1"><span class="s1">The Domain Rental Report for the December 2018 Quarter shows that rents are stronger than sale prices in terms of growth in the past year. Six of the eight capital cities delivered growth in their rentals in 2018, both for houses and for apartments. Recent rental data from SQM Research has similar numbers.</span></p>
<p class="p1"><span class="s1">There is, as always, a strong correlation between vacancy rates and rental growth.</span></p>
<p class="p1"><span class="s1">The cities with the tightest rental markets, Hobart (0.4% vacancy, according to SQM) and Canberra (0.9%), are the ones with the highest annual growth in their rentals.</span></p>
<p class="p1"><span class="s1">Other cities with low vacancies, Adelaide (1.2%) and Melbourne (1.9%), have also recorded solid growth in their rentals.</span></p>
<p class="p1"><span class="s1">Two cities where vacancy rates have been high in the recent past but have improved recently - Brisbane (3.0%) and Perth (3.4%) - are also both delivering moderate growth in their rents.</span></p>
<p class="p1"><span class="s1">The only cities where rents have fallen in the past year are those where vacancies are trending higher - Sydney (current vacancy rate 3.2%, up from 2.1% a year ago) and Darwin (4.0%, up from 2.8% a year ago).</span></p>
<p class="p1"><span class="s1">Sydney house rents have declined annually for the first time in 12 years. Sydney is no longer the nation’s most expensive capital city to rent a house.</span></p>
<p class="p1"><span class="s1">Canberra house rents have continued to rise on the back of low vacancies and the national capital is now the most expensive city for house rentals (according to Domain – the SQM Research figures differ on this point).</span></p>
<p class="p1"><span class="s1">Brisbane house rents increased annually for the first time in almost three years, helped by improvement in the vacancy rate. This is one of numerous markers suggesting that Brisbane real estate will be stronger in 2019.</span></p>
<p class="p1"><span class="s1">Hobart house rents continue to increase, but the rate of growth has slowed. There’s a similar trend with prices and this, combined with a gradual decline in sales activity recently, suggests the mini-boom in the Tasmanian capital has passed its peak.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">Perth house rents have increased annually for the first time in five years. “Coupled with improving yields, the city will become a more attractive option for investors,” says Domain. I tend to agree and note that there are other indicators of improvement in the Perth market, including increased sales activity and elevated prices in the million-dollar suburbs.</span></p>
<p class="p1"><span class="s1">In the apartment markets, Sydney unit rents have declined for two consecutive quarters for the first time on record, with rents hitting an almost two-year low, Domain says.</span></p>
<p class="p1"><span class="s1">Brisbane unit rents recorded the strongest annual increase in almost three years. I note that Moody’s Analytics is forecasting Brisbane will be a national leader on apartment price growth in the next year or two.</span></p>
<p class="p1"><span class="s1">Canberra unit rents experienced the strongest annual growth the city has seen in almost two years, yet another marker of stronger performance in this market, which is underpinned by one of the nation’s best economies and lowest jobless rate.</span></p>
<p class="p1"><span class="s1">Overall the rental data, alongside other figures, points to stronger markets this year in Canberra, Brisbane, Perth and Adelaide – and confirms the decline in Sydney, while pointing a gradual wind-down in Hobart’s buoyant market.</span></p>
<p class="p3"><span class="s1">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p3"><span class="s2"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p4"><span class="s1"><em>twitter.com/hotspotting</em></span></p>
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Rental data provides clues for property price growth areas: Hotspotting's Terry Ryder

<html><body>
<div>The latest Consumer Prices Index revealed some interesting trends in rental growth to December 2015.</div>
<div> </div>
<div>At the national level rental growth of just +1.2 percent is the slowest we have seen since 1995, which makes a good deal of sense given the great surge in the number of investors and the construction response to rising dwelling prices. </div>
<div> </div>
<div>Essentially this is the opposite of what happened in 1985 when investors exited the market following restrictive changes to tax legislation.</div>
<div> </div>
<div><a href="/images/2016/01/29/B1.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/01/29/B1.jpg" alt=""></div>
<div> </div>
<div>
<div><span style="text-decoration: underline;"><strong>City by city</strong></span></div>
<div> </div>
<div>In most quality locations, rental growth is simply following the cycle, slowing in response to a surge in both construction and the number of investor-owned dwellings.</div>
<div> </div>
<div>Annual rental growth remains positive in Sydney (+2.3 per cent), Melbourne (+1.7 per cent), Brisbane (+1.0 per cent), Adelaide (+1.2 per cent), and Hobart (+1.1 per cent).</div>
<div> </div>
<div>It is a truism to say that there are diverging trends within those markets, particularly noteworthy being slowing rents in high density and high rise apartment complexes.  </div>
<div> </div>
<div>Rental growth has turned negative in Perth and Darwin, following an enormous surge through the mining boom, while Canberra has actually recorded moderately negative rents for the past three years.</div>
<div> </div>
<div><a href="/images/2016/01/29/B2.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/01/29/B2.jpg" alt=""></div>
<div> </div>
<div>
<div><strong><span style="text-decoration: underline;">Long run trends</span></strong></div>
<div> </div>
<div>It pays to be wary about analysis calling "plummeting" rental growth, but it is true that the rental market will generally need to slow in order that the high levels of investor stock can be absorbed. </div>
<div> </div>
<div>Eventually stronger rental price growth will return, but only once investor finance has pulled back, and the cycle does take time to work through. </div>
<div> </div>
<div>The long run data shows the cyclical nature of rental growth by capital city. </div>
<div> </div>
<div><a href="/images/2016/01/29/B3.jpg" target="_blank">Click to enlarge</a></div>
<div><img src="/images/2016/01/29/B3.jpg" alt=""></div>
<div> </div>
<div><span>Looking at rental growth by year it is clear that while rental price growth been strongest in Sydney over the past five years, over the past decade the resources states have seen the greatest increase in the cost of renting, some of which is now unwinding.</span></div>
<div><span> </span></div>
<div><a href="/images/2016/01/29/C4.jpg" target="_blank"><span>Click to enlarge</span></a></div>
<div><span><img src="/images/2016/01/29/C4.jpg" alt=""></span></div>
<div> </div>
<div> </div>
<div>
<p><span><em>PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank" rel="nofollow">AllenWargent</a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank" rel="nofollow">blogger</a>.</em><br></span></p>
<p><em>His latest book is <a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank" rel="nofollow">Four Green Houses and a Red Hotel</a>.</em></p>
</div>
</div>
</div>
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National rental growth slowest since 1995: Pete Wargent

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<p>"The pace of increase in rents remains at its slowest in 25 years,” according to Shane Garrett, Chief Economist of Master Builders Australia.</p>
<p>ABS inflation data show that over the year to September 2018, rents increased by just 0.6%.</p>
<p>He said, "the last time we saw a smaller increase in rental prices was back in late 1993."</p>
<p>“Rents have been increasing at a much weaker pace than both wages and general inflation over recent years” </p>
<p>“Current arrangements around Negative Gearing and the Capital Gains Tax discount are also crucial to ensuring that a large enough supply of rental accommodation makes it onto the market from year to year. Introducing any restrictions here could cause shortages of rental accommodation to develop,” Shane Garrett concluded.</p>
<p>There is considerable variation in rental price inflation across Australia’s eight capital cities.</p>
<p>Over the year to September 2018, Hobart rents saw the largest increase (+4.5%), followed by Canberra (+3.0%).</p>
<p>Rents also rose in Sydney (+1.9%), Melbourne (1.8%) and Adelaide (+0.8%) over the same period.</p>
<p>Perth rents saw a sharp decline over the year (-6.1%) with rents also falling in Darwin (- 4.6%) and Brisbane (-0.1%) over the same period.</p>
<p> </p>
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Developments

New apartments

New townhouses

News