The government’s first home owner’s grant and historically low interest rates are putting downward pressure on residential rental values nationwide.
After a sustained period of growth rental values have dipped in recent months.
RP Data’s Property Pulse Report, released today, showed that median weekly rents were beginning to fall, having dropped by as much as 6 per cent in some areas.
Weekly house rents fell by 3.5 per cent ($15) over the June quarter, while unit rents fell 0.6 per cent over the June quarter.
The median weekly rent for a Canberra house fell from $530 in March ‘09 to $498 in June.
Just Rent Sydney director Michelle Galletti told Real Estate Business that one and two bedroom dwellings had suffered the biggest decline in median weekly rents.
“The first home buyers boost has made buying a house cheaper, so rents have to come down in order to compete,” Ms Galletti said.
“However, when rents come down many landlords do not understand why this has happened, they just notice that their bottom line has changed. That is why it is so important for property managers to have clear and transparent communication with their clients.”
Ms Galletti said it was important for property managers to make sure their property advertisements were well designed and informative to encourage people back into the market.