Good news for property investors - rents in Australia are set to rise a solid 7% in 2011.
During the last three months of 2010, rents in Australian capital cities increased by 1.4%; they rose
4.2% during the year. Rents in regional markets did not change during the quarter, rising just 2.9% throughout the year.
Rents for three bedroom houses performed better than four bedroom properties during the year and quarter. The median weekly advertised rent for a three-bedroom property is $350, with a four-bedroom $7 more.
During the final quarter of 2010, rents on three-bedroom houses rose 2.9%, compared with no growth in four bedroom rents. On an annual basis, three-bedroom rents have well and truly outpaced that of four bedroom rents (6.1 per cent VS 1.2 per cent).
Neither recorded a rent increase during the last quarter; but two-bedroom rents rose 6.1% during the past year, compared with 5.4 per cent for one-bedders.
With the interest rates already at levels above average, and the expectation that they will increase further during 2011.
Nationally, we are forecasting rental growth of about 7% this year, in line with the average annual growth during the past five years. While we expect rents to increase during 2011, RP Data anticipates limited home value growth.
We expect the growth in rental rates, coupled with likely wage growth due to a tight employment market, will make ownership a more viable option – especially if capital growth lags behind inflation, which would reduce
home values in real terms.
During the last three months of 2010, rents in Australian capital cities increased by 1.4%; they rose
4.2% during the year. Rents in regional markets did not change during the quarter, rising just 2.9% throughout the year.
Rents for three bedroom houses performed better than four bedroom properties during the year and quarter. The median weekly advertised rent for a three-bedroom property is $350, with a four-bedroom $7 more.
During the final quarter of 2010, rents on three-bedroom houses rose 2.9%, compared with no growth in four bedroom rents. On an annual basis, three-bedroom rents have well and truly outpaced that of four bedroom rents (6.1 per cent VS 1.2 per cent).
Neither recorded a rent increase during the last quarter; but two-bedroom rents rose 6.1% during the past year, compared with 5.4 per cent for one-bedders.
With the interest rates already at levels above average, and the expectation that they will increase further during 2011.
Nationally, we are forecasting rental growth of about 7% this year, in line with the average annual growth during the past five years. While we expect rents to increase during 2011, RP Data anticipates limited home value growth.
We expect the growth in rental rates, coupled with likely wage growth due to a tight employment market, will make ownership a more viable option – especially if capital growth lags behind inflation, which would reduce
home values in real terms.
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