Average weekly rents fell in Sydney in June, with all other Australian capital cities except Melbourne also recording a drop in weekly rental prices.
Sydney renters paid an average $594 per week last month, down 0.2 per cent from the previous month, according to CoreLogic RP Data's monthly rental report.
The nationwide rental snapshot showed rents also fell in Brisbane, Adelaide, Hobart, Canberra, Perth and Darwin.
Melbourne was the only capital that recorded a lift in rents over the month, rising 0.6 per cent to $450.
Averaged across all capitals, weekly rental rates fell 0.2 per cent in June to a record low of $487.
Meanwhile, house rental yields were also lower in most capital city markets.
"The exception is in Hobart were rental growth has been higher than the rate of capital gain," RP Data said in a statement.
"Melbourne house yields sit at their lowest level on record while Sydney house yields are at their lowest level since March 2004."
Rental yields in Sydney were at 3.5 per cent in June, down from 3.9 per cent from the same time last year.
CoreLogic RP Data research analyst Cameron Kusher put the slow pace of rental rises down to the "ongoing boom in dwelling construction across Australia's capital cities".
It was also being driven by a record high participation in the housing market from investors, Mr Kusher said.
"A high proportion of the inner city unit development in particular is being targeted by domestic investors and foreign purchasers," he said.
The latest data comes after Domain Group Rental data out Thursday showed Sydney house rental prices surged to a record high in the three months to June, while in Melbourne they remained at highest-ever levels.
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