According to new research by Australian Property Monitors, residential rentals are expected to increase across all states of Australia throughout 2011.
The API Rental Price Series Quarterly Report, states that Australian unit rental prices increased by 2.3 per cent during the March quarter, as a result of high demand for rental properties, coupled with low availability in most of the capital cities.
In Sydney, median house asking rental is at $485 per week – reflecting a healthy increase of 1.0 per cent, while the median rental for units was at $450 per week, representing a jump of 2.3 per cent, allowing Sydney to maintain it’s position as one of the most expensive places to rent a property in Australia.
Adelaide, Perth and Canberra also recorded growth in house rental prices, with Adelaide and Canberra leading the three with increases of 3.0 and 2.2 per cent respectively.
The unit asking prices have outperformed rental pricing for houses in every state, rising in each capital city with the exception of the Brisbane and Hobart markets which remained flat for the quarter.
In particular, demand for units in Darwin, Canberra and Melbourne has seen prices rise beyond the national trend.
“Renters should prepare for significant growth in rental prices throughout 2011, driven by accelerating economic activity, housing shortages and a depressed first homebuyer market,” APM’s senior economist Andrew Wilson said.
Units for rent are in short supply across most capital cities in Australia. Being smaller and more affordable than houses, their costs has been increasing more than the rental of houses.
There is a general expectation that the rising prices of property rentals when combined with the currently ‘sluggish’ levels of demand and low Auction clearances will entice potential property investors to return to the market.