Rental growth is slowing, but property investing activity is growing sharply.
Australia’s median rent rose 0.2% in October, which was higher than the increase recorded the month before (0.1%) but lower than the increase in the previous three Octobers (which was 0.7% each time), according to CoreLogic.
Meanwhile, over the year to October, the median rent rose 5.8%, which was the lowest figure since April 2021.
“Softening rental conditions are likely symptoms of slowing net overseas migration, which peaked through the first quarter of 2023, as well as changes in household formation, as the average household size gradually increases following the pandemic ‘shrink’,” CoreLogic said.
Despite this reduction in rental growth, “investing in housing remains popular”, with investor borrowing growing sharply over the past year – and more than twice as fast as owned-occupier borrowing.
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