Rents drop on back of FHB demand

Rents drop on back of FHB demand

22 April 2010 by Staff Reporter 0 comments

The surge in first home buyers entering the property market last year on the back of historically low interest rates has helped ease rental rates across Australia.

According to RP Data, there has been minimal rental increases over the last 12 months, with rates for both houses and units remaining relatively unchanged.

Currently the national average rental rates are $440 for houses and $417 for units.

During 2009, weekly rents fell by 4.5 per cent for houses and 1.4 per cent for units.

RP Data research analyst Cameron Kusher said with so many renters moving into home ownership, it was inevitable that the rental growth would ease.

“Added to this was the fact that rents had been recording steady and consistent growth during recent years,” Mr Kusher said.

Perth recorded the greatest fall in rental rates, at 6.9 per cent, followed by Canberra, which suffered a 3.3 per cent drop in rental rates and Sydney with a 1.5 per cent drop.

The surge in first home buyers entering the property market last year on the back of historically low interest rates has helped ease rental rates across Australia.

According to RP Data, there has been minimal rental increases over the last 12 months, with rates for both houses and units remaining relatively unchanged.

Currently the national average rental rates are $440 for houses and $417 for units.

During 2009, weekly rents fell by 4.5 per cent for houses and 1.4 per cent for units.

RP Data research analyst Cameron Kusher said with so many renters moving into home ownership, it was inevitable that the rental growth would ease.

“Added to this was the fact that rents had been recording steady and consistent growth during recent years,” Mr Kusher said.

Perth recorded the greatest fall in rental rates, at 6.9 per cent, followed by Canberra, which suffered a 3.3 per cent drop in rental rates and Sydney with a 1.5 per cent drop.

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