CORELOGIC's Rental Review for the March 2021 quarter revealed a surge in national rental rates of 3.2 percent, however the drivers of this growth are diverse, with the regions, Darwin and Perth collectively driving much of the increase.

Across the combined regional markets, rents rose 4.1 percent in the first quarter of the year while rents in the combined capitals increased 2.9 percent. Regional units recorded the highest quarterly rental growth of 4.8 percent compared to the 2 percent rise in capital city units. Capital city house rents were up 3.3 percent while regional houses rose by a higher 4 percent in the three months to March.

Houses and units in Darwin showed the strongest growth in rental rates over the quarter, up 8.2 percent and 7.0 percent respectively.

CoreLogic’s research director Tim Lawless said, "While housing rents are rising at the fastest pace since 2007, the headline reading hides the sheer diversity of rental conditions around the country. At one end of the spectrum we have Perth and Darwin where annual rental growth is well into double digits and accelerating. At the other end is Melbourne and Sydney where rents are down over the year.

“The annual decline in rents across Australia’s two largest cities is attributable to falling rents in the unit sector, where closed international borders have created a demand shock in a market that was already challenged by high supply. Melbourne unit rents have fallen by -8.2 percent over the year and Sydney unit rents are -4.9 percent lower.

“Some inner city precincts of Melbourne have seen unit rents fall by more than -20 percent over the past 12 months. Prospects for a material improvement in rental conditions across these inner city high density precincts are largely dependent on a return of tenancy demand from international students and visitors, who were previously a key component of rental demand," Mr Lawless said.

“Although rents are generally rising, housing values have been rising at a faster rate which has seen rental yields compress across most of the capital cities.  The exceptions are Perth and Darwin where rents have risen at a faster pace than housing values, driving a rise in yields. The opposite is true in Sydney and Melbourne where rental yields are plumbing new record lows.

“Outside of Sydney and Melbourne, with mortgage rates so low, yields are generally high enough to provide investors with positive cash flow opportunities from the outset,” Mr Lawless said.

Key highlights – March Quarter

• National rental rates rose by 3.2% over the first quarter of 2021; the largest quarterly increase in the national rental index since May 2007.
• Combined capital city dwelling rents rose 2.9% in the March quarter, while regional rents increased 4.1% over the same period.
• Unit rents rose across both regional and capital city markets, with regional units recording the highest quarterly rental growth of 4.8% compared to the 2.0% rise in capital city units.
• Capital city house rents were up by 3.3% over the three months to March 2021 and rents across regional houses rose by a higher 4.0% quarterly.
• Houses and units in Darwin show the strongest growth in rental rates over the quarter, up 8.2% and 7.0% respectively.
• Canberra was not only the most expensive market to rent a house across the capital cities, but also the most expensive capital city unit rental market in the quarter at $513p/w.
• Melbourne recorded the weakest growth in rents over the three months to March 2021, with house rents up 1.6%, while unit rents were unchanged over the quarter.
• National gross rental yields were recorded at 3.55%, down from 3.71% over the December quarter and 3.76% a year earlier as dwelling values outperform rental growth.
• Darwin was the highest yielding capital city, up 21 basis points over the month to 6.21%. Sydney remains the lowest yielding at 2.74%.

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THE Australian Small Business and Family Enterprise Ombudsman Bruce Billson met with Australia Post today in a collaborative effort to resolve issues with delivery of perishable goods to support small business food producers.

Mr Billson described the first meeting with Australia Post as productive, saying he is looking forward to working closely with Australia Post and all relevant stakeholders to ensure small businesses can continue to count on essential delivery services of their products.

“This initial meeting with Australia Post gives me confidence that we can work together to identify what the problems are and to find solutions to make a pathway forward,” Mr Billson said.

“My office has made it clear to Australia Post that many small business food producers, especially those in regional areas, are reliant on the continuation of postage services to fulfil their orders.

“Australia Post has demonstrated a willingness to work through issues in its delivery network, including ongoing discussions with industry regulators. My state-based Small Business Commissioner colleagues are also well-placed to play a key role in this problem-solving process if it is a matter of complex and differing food regulation requirements across the states.

“It’s vital we all roll up our sleeves to achieve an outcome that provides e-commerce-enabled small businesses with the confidence that their good will be delivered by Australia Post," Mr Billson said.

“Our next steps include identifying case studies, finalising plans for consultation and forming an industry working forum to meet in May. Ensuring regulatory bodies, government agencies and e-commerce representatives are at the table to work towards a resolution to this important issue is necessary.

“In the meantime, my office is encouraging small business food producers who rely on Australia Post’s delivery services, to get in contact with my office as we want to make sure they are a meaningful part of this conversation," he said.

“Ultimately, this thorough consultation process is both about resolving the issues Australia Post identifies as well as ensuring essential services such as postage of goods are meeting the needs of small business food producers.”  

Small business food producers can email This email address is being protected from spambots. You need JavaScript enabled to view it.

www.asbfeo.gov.au

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WITNESSES on the Central Coast of New South Wales and in Western Sydney will speak to the Indigenous Affairs Committee this week as part of its inquiry into pathways and participation opportunities for Indigenous Australians in employment and business.

The Committee will also make site visits to The Glen Centre and Yarpa Business Hub.

Stakeholders appearing will include representatives from land councils, Indigenous enterprises and business associations, including: Barang Regional Alliance, Darkinjung Local Aboriginal Land Council, NSW Indigenous Chamber of Commerce, Speaking in Colour, Asquith Workforce, BlaQ Aboriginal Corporation, Muru Mittigar, and NSW Aboriginal Land Council.

Committee Chair Julian Leeser MP said, "These hearings will contribute significantly to the existing body of evidence for this inquiry. The committee looks forward to discussing gaps and opportunities in the workforce and future growth sectors that could result in employment and enterprise options for Indigenous Australians.

"We look forward to hearing from Indigenous business owners about their experiences running successful enterprises. It will be particularly useful to learn about present challenges and how the Government can better facilitate business opportunities," Mr Leeser said.

Public hearing details

Date: Wednesday, 28 April 2021
Time: 10am to 1:15pm AEDT
Venue: Mercure Kooindah Waters Hotel, Wyong. 

Date: Thursday, 29 April 2021
Time: 9am to 1pm AEDT 
Venue: Yarpa Business and Employment Hub, Liverpool.  

Interested parties can listen to the audio live streaming.

A full program is available at the inquiry website.

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THE Carbon Market Institute saw the 12th auction under former Prime Minister Tony Abbott’s Emissions Reduction Fund (ERF) -- with $108 million results announced -- as marking a turning point in federal climate policy.

Carbon Market Institute CEO John Connor said,  “Let’s hope this is a turning point for a more evolved and sophisticated approach to carbon markets by the Morrison Government under stronger market driven climate policy that leads to more ambitious 2030 and 2050 goals.”

Mr Connor said a similar size auction due in September later this year will need to draw on PM Morrison’s Climate Solution Fund commitments of just under $2 billion over the next 15 years.

He said the average $15.99 carbon price in this auction is lower than the spot market prices of around $18 that Australian companies are paying in voluntary or compliance emissions trades.

“The ERF became a lifeline to carbon and some other emission reduction activities after the Gillard government’s emissions trading scheme was removed,” Mr Connor said.

“The Morrison Government has begun making some welcome pragmatic changes to the Emission Reduction Fund carbon market, and is seeking to expand accessibility. We continue to recommend strengthening the safeguard mechanism so emission intensive businesses become the primary funder cutting emissions rather than the taxpayer.

“The safeguard mechanism already requires most major emitters measure and manage their emissions, and make compliance investments if they exceed set baselines. Those baselines could, with appropriate reforms, be aligned against strengthened 2030 and 2050 Australian climate goals that provide clearer investment guidelines for business transitioning to net-zero emissions,” Mr Connor said.

“US President Joe Biden’s Summit has shown us all that Australia will need to do more on climate change if it wishes to avoid penalties put in place by our trading partners -- such as carbon border adjustments that are looming in Europe and Japan.”

About the Carbon Market Institute

The Carbon Market Institute is an independent industry association for businesses leading the transition to net zero emissions. Its members include primary producers, carbon project developers, Indigenous corporations, legal and advisory services, insurers, banks and emission intensive industries developing decarbonisation and offset strategies.

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