Vacancy rates across Australia are at all-time lows, and with rents going up in response to strong demand for rental properties, the opportunities for improved residential property investment yields should catch the attention of property investors across the country, the Real Estate Institute of Australia said this week.
The REIA/Mortgage Choice Real Estate Market Facts March quarter 2006 edition shows that the very low 1.4 per cent vacancy rate in Perth has led to rapidly rising rents. At the same time, house prices are soaring in Western Australia, as a result of the boom in minerals prices and infrastructure developments.
"Growth is likely to continue in the WA housing market as long as export dollars flood into the market, creating employment opportunities, stimulating net migration, and increasing consumer demand. People are caught up in the spirit of buying, and demand is outpacing supply," said Tony Brasier, REIA President.
Melbourne, Hobart, Brisbane and Canberra all recorded moderate increases in median house prices over the year to March 2006, while prices remained flat in Adelaide and declined in Sydney.
During the March quarter 2006, vacancy rates were tight in every city, at 1.5 per cent in Brisbane, 1.7 per cent in Adelaide, 1.8 per cent in Melbourne and Canberra, 2.0 per cent in Sydney, 2.2 per cent in Hobart and 3.3 per cent in Darwin.
"Median weekly rents have been steadily increasing in all capital cities in response to the increased demand for rental accommodation," said Mr Brasier.
"Increasing rents are expected to continue into the coming months, and will act as an incentive for investors considering a property purchase. While the quick profits of 2003 and 2004 are no longer available in the eastern states, long term investors have the opportunity to buy at reduced prices and take advantage of low vacancy rates and increasing rents," he said.
