Weekly rents are on the rise
Investor activity in the housing market is on the increase.
Between February and March this year, investor commitments in housing rose 1.4%, according to the Australian Bureau of Statistics.
And the surge in investor activity comes as an RP Data-Rismark property report indicates rents in Australia’s capital cities increased by 3.5% for houses and 3.3% for units in the 12 months to April. While the rental increases were modest, the figures were still ahead of inflation and average home value growth.
RP Data-Rismark attributed the heightened increase in investor activity to the Reserve Bank of Australia’s slashing of the cash rate, which was down to 2.75% at their June meeting. Investors have recognised the improved yields, and with the bottoming of the market in many capital cities, are readying themselves to take advantage of growth in values in coming years.
The RP Data-Rismark findings showed rents, on average, increased year-on-year between 1996 and April this year. More specifically, in the last five years, investment properties attracted average annual rental increases of five per cent. Currently, the median rent for homes in Australia’s capital cities is $474 per week and $440 per week for units.