Rentals Expected To Rise

Some parts of Australia experienced reductions in rents during the December quarter, but an increase is anticipated later this year.

In a report to be released it is predicted that the results will reveal that national rental growth was the weakest since 2002. This compares to an average rate of 12 per cent for 2007 and 2008.

During the December quarter rises in median rents in Perth, Adelaide and Canberra were insufficient to offset the flat rental markets in Sydney, Melbourne and Brisbane, this is not expected to continue.

Some of the aspects that could influence the rental market include the end of the first home buyers grant, and greater job opportunities, stronger house price growth and low vacancy rates.

It is anticipated that Sydney rents will double 2009 rates and that Melbourne rents should rise by 5 to 10 per cent.

Whilst traditionally this is normally the busiest month for the rental market, this month so far has been relatively weak.