NRAS Market Index Update
The 2019/20 NRAS Market Index (NMI), effective for the calculation of market rent from 1 May 2019, has been released showing a negative trend for Western Australia (-6.1%) and Northern Territory (-4.4%) once again, with Queensland showing a 0.0% change.
2019-20 NRAS Year
|
Jurisdiction |
NRAS Market Index Value |
|
Sydney / New South Wales |
1.4% |
|
Melbourne / Victoria |
1.8% |
|
Brisbane / Queensland |
0.0% |
|
Adelaide / South Australia |
1.1% |
|
Perth / Western Australia |
-6.1% |
|
Hobart / Tasmania |
5.4% |
|
Darwin / Northern Territory |
-4.4% |
|
Canberra / Australian Capital Territory |
3.0% |
Western Australia and Northern Territory have returned a negative trend over the last 3 years, with the 2017/18 NRAS year being the most significant for Western Australia with a negative NMI of -7.2%.
Vacancy rates in Western Australia are showing an improvement, with an increase of 3.7% since 2017 and the rental market is expected to bounce back over the next 12-18 months, based on the ABS data. The population has seen a growth of 21,000 people in the last year.
Several regional centres in Western Australia had negative growth. However, the State government has developed a Regional Centres Development Plan (RDCP).
The objectives of RCDP are:
- Strengthen the capabilities of Western Australia's strategic regional centres to drive long run investment, business and employment growth.
- Accommodate regional population growth that is generated by Western Australia's long run economic growth.
- Support the efficient and effective delivery of the Western Australian Government's regional development effort and investment.
You can read more at: http://www.drd.wa.gov.au/projects/Economic-Development/Pages/Regional-Centres-Development-Plan.aspx
After a flat few years, the Western Australia resources sector is picking up, and there are currently $1 billion worth of new projects and mine expansions in the pipeline in Western Australia.
The next NMI is due in March of 2020 and projected growth in Western Australia should show a more positive result for the next NRAS year. Properties due for a valuation should start to reset the rents to a more favourable amount for the investor.
Historic NRAS Market Index Values*
|
NRAS Year |
NSW |
VIC |
QLD |
SA |
WA |
TAS |
NT |
ACT |
|
2018-19 |
2.4% | 1.8% | -0.4% | 0.2% | -7.1% | 3.5% | -5.6% | 0.2% |
|
2017-18 |
2.5% |
1.6% |
0.2% |
0.9% |
-7.2% |
3.5% |
-8.2% |
2.3% |
|
2016-17 |
2.3% |
1.7% |
1.0% |
1.2% |
-2.9% |
1.0% |
-2.7% |
-1.5% |
|
2015-16 |
3.2% |
2.4% |
2.0% |
1.7% |
1.5% |
1.0% |
2.7% |
-1.8% |
|
2014-15 |
3.4% |
2.0% |
2.1% |
2.4% |
5.8% |
1.0% |
8.4% |
0.4% |
|
2013-14 |
4.4% |
2.5% |
2.7% |
2.5% |
6.5% |
1.7% |
4.2% |
3.1% |
|
2012-13 |
6.3% |
4.0% |
2.9% |
4.2% |
3.9% |
3.4% |
1.6% |
6.4% |
|
2011-12 |
5.0% |
3.8% |
2.9% |
4.4% |
3.3% |
3.6% |
6.0% |
4.8% |
|
2010-11 |
5.7% |
4.8% |
4.9% |
4.0% |
6.0% |
4.6% |
10.6% |
4.2% |
*Percentage change from corresponding quarter of previous year