Whittlesea Review, Page: 19
Tuesday, 20 September 2011

RECENT figures released by property research group RP Data shows that capital city rents have increased by 4.6 per cent for houses and 3.9 per cent for units on average over the past 12 months.

Melbourne investors have also enjoyed growing rental yields as rents have increased by 1 .9 per cent for houses and 3.4 per cent for units on average over the past 1 2 months.

According to RP Data’s September 2011 Market Update, the median weekly rents across the combined capital cities currently sits at $440 per week for houses and $431 for units.

The report suggests that over the past five years, house and unit rents have increased at a faster rate than property values; a trend which is predicted to continue.

Emma Gordon, Property Management Operations Manager for Harcourts Victoria, sugjerJ thot t~ore are seveia~ reanons for Meihoni no cm ent rental clirii.-th-.

Rentai vacancies remain low in inner city Melhouine and in the outer suburbs. With a sense of insecurity on the financial markets, people who may have been entering the first home buyers market may take the more cau tious option to stay in or enter the rental market. This will push rents up and keep vacancy rates low.

Rentals have continued to rise in Melbourne and to a slightly lesser degree in the suburbs. As the city rents skyrocket there will be a ripple effect out into the suburb’s as people are forced to move further out in search of slightly larger and more affordable accommodation,” Mrs Gordon said.

“As the sales market cools we hope to see more investors back in the market which may in fact bring more rental properties onto the market.” Mrs Gordon continued.