Increasing demand and lower vacancy rates will cause many rents to increase during 2008.With the population growing and rising interest rates putting some investors off the residental market, vacancy rates, (currently running at an average 1.7 per cent) are unlikely to improve.
Increases in median rents can be expected in all states, the Real Estate Institute of Australia says in its 2008 real estate market outlook. The likely rise follow across-the-country increases last year with rents for three-bedroom houses increasing by an average of 12.6 per cent to September 2007.
Darwin is now the most expensive rental location in Australia (the median rent for houses is $440 per week and for other dwellings $340 per week) although Sydney and Canberra renters also pay $340 median weekly rent for two-bedroom other dwellings.
The cheapest rental location is Adelaide at $255 per week for a three-bedroom house and $205 per week for a two-bedroom dwelling.
Some investors are being turned off from the housing market as interest rates have risen and are seeking to take advantage of other investment opportunities which have more favourable taxation treatment.
On the upside, however, with a fluctuating stock market, residential real estate in Australia is looking decidely stable!
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