Investors looking to generate a cash positive investment should turn their attention to Canberra’s residential market, new research has suggested.
According to Colliers International, Canberra has returned the highest medium density yield nationwide for a two bedroom dwelling for the last six consecutive quarters.
Over the March quarter 2011, the median weekly rent for a two bedroom medium density dwelling rose by 2.4 per cent to $430. In addition, rental vacancy rates have declined 0.2 per cent over the three months to March 2011, with the vacancy rate sitting at 1.5 per cent.
Colliers International director of research Ariel Pollard said demand for rental properties continues to remain strong, with Canberra recording the second lowest vacancy rate of all the east coast capital cities after Sydney (1.1 per cent).
“The level of demand for property has increased in the 12 months to December 2010 as the estimated resident population for the ACT grew by 6,296 persons to 361,900,” she said.
“The growth rate of two per cent is the second highest in the nation, just behind Western Australia (2.1 per cent) and well above the national growth rate of 1.5 per cent.”