Ensure you never miss an issue of the
real estate business bulletin
Climbing rents good news for investors

Climbing rents good news for investors

by Reporter 0 comments

Property investors looking for an immediate return on their investment are flocking to the eastern suburbs of Sydney where house rents are soaring.

According to figures from RP Data, Rose Bay in Sydney recorded the greatest annual growth in house rents, with a 58.3 per cent increase.

Over the 12 months, median weekly advertised rents in the suburb increased from $600/week to $850/week.

A top five list of areas with best rental growth compiled by rpdata.com research analyst Cameron Kusher showed a fairly even split between high and low priced suburbs making the list with many New South Wales, Victorian and Western Australian suburbs having higher price tags whilst other states recording a mixture of higher and lower priced stock.

Mr Kusher today said that it’s not surprising to find in the analysis that the best performing suburbs tended to be in the capital city cities.

For the unit market, West End in Brisbane achieved the greatest jump in median weekly advertised rents, increasing by 39.4 per cent from $330/week to $460/week.

The vast majority of suburbs with the greatest annual growth in rents for units, have witnessed this growth across lower priced stock with the only exception being Western Australia.

Over the 12 months to September 2009 weekly rents for houses nationally have increased by 3.4 per cent and units have witnessed a slightly greater rate of growth at 4.1 per cent.

Mr Kusher said that compared to recent years, these results reflected a slower rate of growth. In most areas, rents have actually shown modest falls in recent months as value growth has returned to the market and rental growth has failed to keep pace.

He said that first home buyer activity has eased some of the pressure on the rental market as renters became first home buyers.

“With the First Home Buyers Grant Boost being wound back and mortgage rates rising, we anticipate that more people will be forced to remain in the rental market,” Mr Kusher said.

“Ultimately, the impact is likely to be that rental rates will once again start to climb, especially given that nationwide our annual new dwelling requirement continues to go unfulfilled.”


le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Climbing rents good news for investors
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?