Australian rents set to soar by 50 percent: Survey
Rents in most Australian state capital cities will rise by 50 percent over the next four years due an undersupply of housing, a report released on Friday said.
By Agencies |
SYDNEY: Rents in most Australian state capital cities will rise by 50 percent over the next four years due an undersupply of housing, a report released on Friday said.
Major cities across the nation have already seen double-digit percentage rises in rents in the past few years as advertised rental listings dropped to a five-year low, Australian Property Monitors (APM) said in its March report.
"Expect conditions for renters to worsen, as APM forecasts a 50 per cent rise in rents in most capital cities over the next four years," it said.
APM general manager Michael McNamara said the rental market was stretched to the limit and would become even tighter due to a lag in building.
"...Our construction sector struggles to keep up the supply of well-located, affordable property to accommodate a growing population of renters," he said.
"This is not good news for renters, we advise renters to lock in their current arrangements for as long as they can."
McNamara said high mortgage interest rates were also deterring people from purchasing their own homes.
A survey by insurance company AAMI found that rents in Australia's most populous city, Sydney, rose by 11 per cent in the year to March to a median $390 (358 US) per week for a house.
In the southern city of Melbourne, house rents increased by 17 per cent to $350 per week, it said.
Major cities across the nation have already seen double-digit percentage rises in rents in the past few years as advertised rental listings dropped to a five-year low, Australian Property Monitors (APM) said in its March report.
"Expect conditions for renters to worsen, as APM forecasts a 50 per cent rise in rents in most capital cities over the next four years," it said.
APM general manager Michael McNamara said the rental market was stretched to the limit and would become even tighter due to a lag in building.
"...Our construction sector struggles to keep up the supply of well-located, affordable property to accommodate a growing population of renters," he said.
"This is not good news for renters, we advise renters to lock in their current arrangements for as long as they can."
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McNamara said high mortgage interest rates were also deterring people from purchasing their own homes.
A survey by insurance company AAMI found that rents in Australia's most populous city, Sydney, rose by 11 per cent in the year to March to a median $390 (358 US) per week for a house.
In the southern city of Melbourne, house rents increased by 17 per cent to $350 per week, it said.
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