Asking rent prices aren’t showing signs of moderating in 2015 despite record levels of investor activity and increased dwelling construction – providing welcome news for property investors this year.
In most capital cities asking rents have remained at or near record levels over the last quarter, according to the Domain Group Rental Report. The overall vacancy rate in December was recorded at 2.4%, with the rate for houses at 2% and units at 3%.
Sydney, Adelaide and Hobart recorded increases in the median asking rent for houses while all other capital cities remained steady over the December quarter. Median weekly asking rents for units in all capital cities, except Melbourne and Perth, remained steady or increased over the quarter.
Domain Group’s senior economist Andrew Wilson believes this is a trend which we will see continue over the coming year.
“Despite record level investor activity and increased dwelling construction, demand for rental properties continues to outstrip supply, resulting in tight vacancy rates and high asking rents in most capital cities,” he said.
“Upward pressure on rents is set to continue through 2015, particularly in the robust Sydney market where underlying demand continues to outstrip supply.”