RENTAL prices are stabilising in Newcastle and Lake Macquarie according to the latest data from CoreLogic.
The pace of rental growth has started to ease with an increase of 0.2 per cent over the last quarter in the region.
Last month, rental prices fell 0.1 per cent, with the current median weekly rental value now $606 in Newcastle and Lake Macquarie.
It comes after a tough year for renters who saw increases of 8.9 per cent in the region over the past 12 months.
Rent in the Hunter Valley (excluding Newcastle) has increased slightly more in comparison with a rise of 0.5 per cent over the past month and 1.1 per cent during the last quarter. The median weekly rental value is $541.
Despite promising news with the drop in rent values, Australia's rental market continues to tighten to record levels with the vacancy rate standing at 1.0 per cent in the region.
On a national level, dwelling rents rose 0.6 per cent in September and 2.3 per cent over the September quarter, down from a 2.9 per cent increase over the June quarter.
The data reveals that rental growth across the combined capitals continues to outpace rent rises across the combined regional areas.
CoreLogic Research Analyst and report author Kaytlin Ezzy said this trend was largely owing to the return of overseas migrants, who typically choose to rent in high-density markets of Sydney and Melbourne upon arrival.
Rental growth in the combined capitals was up 2.7 per cent and 1.3 per cent across the regions, over the three months to September.
"While both markets saw the pace of quarterly growth ease compared to the June quarter, the decline in the rate of growth seen across the combined regional markets was significantly stronger," Ms Ezzy said.
"However, despite the easing growth trend, rental availability in both markets remains extremely tight, with the capitals recording a monthly vacancy rate of 1.1 per cent, while just 1.0 per cent of regional rental properties were observed as vacant in September."
In comparison, Sydney saw dwelling rents rise 2.9 per cent.
The gap between Australia's two most expensive capital city rental markets (Canberra and Sydney) narrowed to $17 per week, with Canberra rents falling as Sydney dwellings recorded strong rental growth.
Sydney overtook Canberra as Australia's most expensive unit rental market ($594 per week), while Canberra remains the most expensive capital to rent a house in at $730 per week.
The annual growth in national house rents slowed to 9.4 per cent in September.
