Rent growth shows signs of a slowdown as renters and investors reassess
There are still strong yields to be had if you know what and where to buy
2 min
After strong yields in recent years, rent growth is set to slow across Australia next year, according to new data.
Research by property data and analytics provider CoreLogic shows after 35 consecutive increases in rent values to July this year, they have begun to slow in recent months.
The trend is most obvious in regional areas where rent values have been slowing since April last year and appear to have flattened out. In regional Tasmania, where data from 40 suburbs was analysed, rents have fallen by 47.5 percent. This was followed by regional NSW, where of the 353 suburbs analysed, 38.4 percent have recorded a decrease in rents. However, data shows the capitals have also been impacted, with more than 90 percent of Hobart suburbs recording a fall in rent over the past quarter, followed by Canberra at 88.9 percent. In Sydney’s suburbs, there’s a strong contrast between rent values for houses and apartments, with the former recording a fall of 19 percent, while apartment rent values fell just 6.9 percent.
CoreLogic Australia head of research Eliza Owen said there were several factors at play signalling that the trend would continue into 2024. A predicted decline in interest rates could encourage more investors into the market, leading to an increase in the rental supply and therefore lower rent growth. More first homebuyers might also be ready to enter the property market as confidence around the cash rate grows.
Slowing income growth, which was strong during the pandemic, could also lead some renters to reassess their decision to move into more spacious single households and back into more affordable share house options, freeing up more rental stock.
Apartments continue to represent the best yield compared with houses for investors, with significantly lower falls in rents in all Australian capitals, with the exception of Canberra and Hobart where they are in par with corresponding falls in rents for houses.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Dar Global strengthens ongoing relationship with the Trump organization
2 min
Dar Global, an international luxury real estate developer, and The Trump Organization, known for its prestigious properties and iconic developments worldwide, have announced plans for a new project in Jeddah, Saudi Arabia.
This agreement builds on the successful Trump International Oman project within the AIDA development, one of the largest premium mixed-use real estate ventures globally, which has already garnered significant acclaim.
Aimed at the luxury Saudi Arabian market and international investors, this development advances Dar Global’s strategy of capitalizing on opportunities in key Saudi cities. As the international arm of Saudi mega-developer Dar Al Arkan, this project marks Dar Global’s debut in Jeddah and will enhance its real estate portfolio in the country. Listed on the London Stock Exchange, Dar Global currently has US$5.9 billion worth of projects in development across six countries: the UAE, Oman, Qatar, the UK, Spain, and Bosnia.
Ziad El Chaar, CEO of Dar Global, commented: “We are delighted to strengthen our ongoing relationship with The Trump Organization and expand our portfolio by delivering premium properties to redefine Saudi Arabia’s high-growth real estate market. The new agreement in Saudi Arabia will leverage the strengths of both organizations to attract more international investors and vacationers. This collaboration underscores our commitment to grow our footprint by elevating the standards of luxury living in the region.”
Eric Trump, Executive Vice President of The Trump Organization, said: “We are thrilled to expand our footprint in the Middle East and bring the Trump standard of luxury to the region through our long-standing relationship with Dar Global. This collaboration embodies our shared vision of creating landmark developments that exude luxury, quality, and sophistication. Together with Dar Global, we are setting new benchmarks for excellence, aiming to meet the demand for iconic properties in key markets.”
Dar Global PLC is a highly differentiated international real estate business, primarily focusing on developing second homes for internationally mobile customers in desirable locations across the Gulf Cooperation Council (GCC) and Europe, including downtown Dubai, Muscat in Oman, and the Costa del Sol region in Southern Spain.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
