Report Predicts Rental Rises Accross the Board in 2010

Property investors will be pleased with Australian Property Monitors (APM) expectations of rental increases throughout Australia

The report stated that after rents remained stagnant in 2009, strong increases are expected in the coming year.

APM economist, Matthew Bell, said that this implies increased market confidence.

‘It is clear that in 2009 rents were generally kept in a holding pattern as landlords and the market waited to
see the end of the global financial crisis.’

Mr Bell said that increases are expected in all capital cities.

‘Sydney rents are likely to increase by at least double the 2009 rate of 2.2% to approach the $500 per week level for houses. After a totally flat 2009, Melbourne rents should resume their long-term upward trend and are expected to rise by [between] 5% and 7%, in line with their long term growth rate.

‘Both Brisbane and Perth are poised to outperform the rest of the country as their property markets play catch up to Sydney and Melbourne. ‘In Perth, median house rents could hit $400, a rise of 11%, in line with the average growth rate of 12.4% experienced since 2003. Brisbane rents, coming off the same base of $360 as Perth, are also likely to approach $400 with an expected growth rate closer to 8%,’ Mr Bell said.

The report said that Canberra prices are expected to grow by up to 10%, with Darwin rents increasing by 8% throughout the year.

Mr Bell expects renters will be able to cope with the increases.

‘Although rents should rise across the board, an improving employment outlook will mean more income for renters to be able to cope with these increases in 2010.’

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