- Rents increased by 0.1% for the quarter
- Housing Group decreased by 0.6% in December quarter
- Rental market conditions are improving across most capital cities
According to the latest December CPI figures from the Australian Bureau of Statistics (ABS), rents have recorded a small rise of 0.1% following two quarters of falls.
The Real Estate Institute of Australia (REIA) said the figures show signs of a recovering rental market across most capital cities, consistent with falling vacancy rates and rising advertised rates.
Adrian Kelly, President of REIA said that rents have increased across all capital cities except Sydney, which showed no change after five consecutive quarters of falls.
“The CPI figures together with ABS’s housing finance figures show increased interest by investors on the back of improving rental market conditions across most capital cities even though rent freezes for existing tenants remain in place in some states and territories,” Mr Kelly explained.
Overall, the Housing Group fell 0.9% during the 2020 year and 0.6% in the December quarter (seasonally adjusted terms).
An important point to note is that the main contributor to the decrease was electricity, which fell 7.7%, the strongest quarterly fall in the history of the series dating back to 1980.
This was due to the $600 household electricity credit introduced by the Western Australian Government in early November, causing electricity prices to plummet in Perth.