Rising Rents Rewarding Investors
Thursday, 2 February 2012
Australian Property Monitors figures reveal sharp increases in Sydney rents over the December quarter. Median weekly apartment rents rose 4.5% to $460 while median house rents rose 4.2% to reach $500. While rents in other centres across Australia are only growing at moderate levels, it is likely the cost of renting in Sydney will continue to increase. Vacancy rates in Sydney remain extremely tight and a lack of new development is causing the supply/demand equation to deteriorate further.
Sydney investors are now enjoying the best conditions in a number of years. As well as strong rental growth, landlords are benefiting from lower costs of financing, with two interest rate cuts last year and more expected during 2012. Stable property prices are helping those seeking to expand their investment portfolios. The end of stamp duty concessions for first home buyers on January 1 also means investors should now face less competition when buying.
