Newspaper article Fraser Coast Chronicle (Hervey Bay, Australia)

Welcome Increase for City Rental Homes

Newspaper article Fraser Coast Chronicle (Hervey Bay, Australia)

Welcome Increase for City Rental Homes

Article excerpt

Mr Kusher highlights the best and worst suburbs for rental rate gains over the year to June 2010 with Sydney leading the charge, having the greatest number of strongest performing suburbs; 28 or the 40 suburbs analysed for the analysis are located in Sydney.

In contrast, across the country the worst performer over the period was in the exclusive Perth suburb of Applecross.

In the June 2010 Quarterly Rental Review, Mr Kusher reported that around the country's capital cities, combined rents across house and units markets increased by 2.9 per cent over the year.

By comparison, house rents at this time increased by a total of 40.0 per cent over the last five years and unit rents increased by 45.8 per cent. Across the capital cities, Adelaide house rents increased by as much as 6.7 per cent over the last year and have been flat in Sydney, Melbourne and Perth.

Mr Kusher said: "Rental markets have been recording lower levels of growth due largely to a drop-off in first home buyer demand which was very strong during 2009 and where we had the lowest interest rates in almost 50 years coupled with the First Home Owner's Grant Boost. Combined, these two factors dramatically improved affordability.

"As a result, a record number of first-time buyers who jumped from the rental-set became active during 2009. This in-turn eased upwards pressure on rental rates.

"Despite a sluggish performance in rental growth across the nation over the past year, there are areas that emerged as the standout perfomers," Mr Kusher said.

The results for the 40 strongest performing suburbs are varied however; Sydney was the standout performer with 28 of the 40 best performing suburbs. The suburbs detailed mostly fall into two broad categories: premium markets with prices in excess of the capital city median price or outer more affordable suburbs which are located close to working nodes which results in strong rental demand.

Best Performer: Sydney's exclusive waterfront suburb of Vaucluse, recorded the largest increases in rental rates (+35. …

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