Rents to surge by 20%
Rents may surge by over 20 per cent by the end of next year, according to Australia’s largest independent property group.
Investors with properties in capital cities will see weekly rental returns surge as a result of the national housing crisis, predicted The Investors Club in a new report.
Australia’s housing shortage saw the gap in supply and demand soar from 28,200 dwellings to 186,800 during the last financial year.
Out of more than 17,000 properties managed by The Investors Club for members the vacancy rate sits below 0.5 per cent president Kevin Young said.
In Brisbane, Sydney, Melbourne and Perth the vacancy rate for the properties on their books is “virtually zero” according to Mr Young.
“As a result of rising demand and low vacancy rates, our Club members are currently undertaking rental reviews in these capital cities that are at least 10 per cent higher than rents being paid this time last year,” he said.
“This severe lack of rental accommodation has been caused by excessively high interest rates in Australia and restricting lending practices by the four major banks who now have a stranglehold on the home lending.”
Current RP Data statistics show Brisbane, Sydney, Perth and Melbourne reporting gross rental yields for dwellings at between 4.1 and 4.8 per cent, with 4.87, 4.8, 4.6 and 4.14 respectively.