Rent to surge in 2010

Rent to surge in 2010

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Rents across Australia are expected to soar in 2010, new research from Australian Property Monitors (APM) has found.

According to APM, Sydney rents could hit a rate of 4.4 per cent - more than double the rental growth seen in 2009. Melbourne’s rents are expected to rise by five to 7 per cent.

APM economist Matthew Bell said Perth will experience the biggest climb in rental prices and has predicted 11 per cent growth in the city.

But while Mr Bell said a strong lift in rents is likely this year, property managers and landlords reported that the market had remained soft so far this month, which is typically the busiest month for the rental market.

Chris Rolls, managing director of the Gold Coast and Brisbane residential property manager Rental Express, said: "We have found this is the slowest start to the year for the last five years."

Mr Rolls, who owns a four-bedroom rental property in Brisbane suburb Kelvin Grove, said the contract for the property came up for renewal in 10 days and he had opted to keep the rent at $520 a week in the hope that the current tenants would not leave.

2009 was the weakest year for rental growth since 2002.

The 2 per cent increase nationally was well down on the average rate of 12 per cent for 2007 and 2008.

Rents across Australia are expected to soar in 2010, new research from Australian Property Monitors (APM) has found.

According to APM, Sydney rents could hit a rate of 4.4 per cent - more than double the rental growth seen in 2009. Melbourne’s rents are expected to rise by five to 7 per cent.

APM economist Matthew Bell said Perth will experience the biggest climb in rental prices and has predicted 11 per cent growth in the city.

But while Mr Bell said a strong lift in rents is likely this year, property managers and landlords reported that the market had remained soft so far this month, which is typically the busiest month for the rental market.

Chris Rolls, managing director of the Gold Coast and Brisbane residential property manager Rental Express, said: "We have found this is the slowest start to the year for the last five years."

Mr Rolls, who owns a four-bedroom rental property in Brisbane suburb Kelvin Grove, said the contract for the property came up for renewal in 10 days and he had opted to keep the rent at $520 a week in the hope that the current tenants would not leave.

2009 was the weakest year for rental growth since 2002.

The 2 per cent increase nationally was well down on the average rate of 12 per cent for 2007 and 2008.

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