Australian property investment expert Michael Yardney has claimed that rental growth could make 2012 a good year to purchase residential sites in the country, with the current squeeze in vacancy rates making a jump in rents likely.
He pointed to the recent figures from RP Data showing that rental rates have increased by 46.8 per cent in capital cities over the last six years as evidence for the growing returns available to canny investors.
Writing in his official blog for Property Observer, Mr Yardney also observed the heterogeneous nature of Australia's rental markets, with certain areas performing especially well.
"Currently the Sydney, Perth [and] Canberra rental markets are particularly strong due to a low level on construction of new accommodation," explained the investment expert.
The latest data from the Australian Bureau of Statistics' consumer price index indicated that rents increased by one per cent nationwide over the first quarter of 2012.
Posted by Craig Francis