oh no...... please quickly build more new houses... I'm eyeing a 3-bedroom townhouse near my friend's place (20km away from city) at $420/week. I'm torn between renting an apartment nearer to the city or renting a townhouse (with garden for my FIL and pool for me) further away from city.
INCREASING demand and lower vacancy rates will cause rents to increase during 2008, the Real Estate Institute of Australia predicts.
High demand for rental properties - caused by population growth and declining investor interest - suggests vacancy rates, running at an average 1.7 per cent, are unlikely to improve, it says. Increases in median rents can be expected in all states, the institute says in its 2008 real estate market outlook released today.
The likely increases follow across-the-country increases last year with rents for three-bedroom houses increasing by an average of 12.6 per cent to September 2007.
The institute says rental affordability is already a significant issue in several cities, notably in Darwin where the median rent for houses is $440 per week and for other dwellings $340 per week.
Darwin is now the most expensive rental location in Australia, although Sydney and Canberra renters also pay $340 median weekly rent for two-bedroom other dwellings.
The cheapest rental location is Adelaide at $255 per week for a three-bedroom house and $205 per week for a two-bedroom dwelling. But even there rents rose more than eight per cent in the year to September 2007.
The institute says investors have shied away from the housing market as interest rates have risen and to take advantage of other investment opportunities which have more favourable taxation treatment.
The slower transition from renting to buying, caused by the lowest first-home affordability rate in 22 years, was also impacting on the number of properties available for rental
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