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Rents ease in capital cities

Investment properties became slightly less attractive yesterday, after new data revealed weekly asking rents across the capital cities fell 2.2 per cent over the March quarter.

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According to Australian Property Monitors’ Rental Price Series Quarterly Report, national median asking rents for units fell by 1.1 per cent.

Median weekly asking rents for houses remained unchanged in Sydney, Melbourne, Brisbane and Perth, and fell in Canberra (2.0 per cent) and Adelaide (0.6 per cent) in the quarter.

“Flat or declining rental growth over the March quarter for both houses and units indicates decreased competition for rental accommodation, particularly from first homebuyers that have become active as housing affordability has improved,” APM’s senior economist Andrew Wilson said.

“However with ongoing shortages of accommodation, low levels of new supply and continued inactivity by investors, upward pressure on rentals can be expected to resume in most centres over 2012.”

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