Friday, October 8, 2010

Rents in 2010

From RP Data September Quarter 2o10 Rental Review

"Over the last five years the weekly rent on a unit both nationally and within the capital city markets has increased by more than that of houses. This result reflects the growth in demand for units as lifestyle preferences change and affordability pressure see more prospective tenants turn towards unit living as an alternative to detached homes. ...

The slowdown in the rate of rental growth is commensurate with the Reserve Bank of Australia’s aggressive cuts to official interest rates as the Global Financial Crisis hit and the introduction of the First Home Owner’s Grant Boost. Both initiatives, coupled with softening property values during 2008 and consistent growth in rental rates during recent years, resulted in a significant boost to affordability for first time buyers. As a result during 2009, first home buyer activity was at its highest level on record. With first time buyers generally coming from the rental market it’s no surprise to see that the rate of rental growth had slowed so markedly."

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