Rental rates are falling on the back of increased home buyer activity, PRDnationwide’s latest Quarterly Economic & Property Report has found.
“But with property prices continuing to climb and interest rates increasing, 2010 should see the rental market tighten with lower vacancy rates leading to higher weekly rents,” the report’s author, Aaron Maskrey, said.
According to Mr Maskrey, the number of new dwellings increased in the third quarter by 21.2 per cent – or 6439 new homes.
“This increase is a much needed boost to ease pressures of housing across Australia,” he said.
The median house price in Australia climbed on average by 11.6 per cent in November - the highest level in 2009.
Darwin recorded the biggest increase of 17.91 per cent while Melbourne prices rose 16.97 per cent.
Hobart remained the cheapest place to buy a home, with median price of $310,050.