Double-digit rental gains for capital city and mining town landlords: Residex
While property values have tread water over the past year, rents have risen by double-digit figures in a number of capital city markets as well as regional areas with ties to the mining industry.
The list of the top 10 best performing rental markets is dominated by markets with ties to the mining boom, which occupy the top six positions.
The top performing rental market is Perth unit rents, which are up 27% for the year to October to a median weekly rent of $470, but not far behind is the WA country unit market, where rents have increased by 25% to $375, some of this likely tied to demand for rental property in mining regions.
Weekly rents for Perth houses are up 20% the year to October to a median of $480.
The big increases in Perth house and unit rents are being driven by a lack of available rental accommodation with residential vacancy figures for October compiled by SQM Research show a Perth vacancy rate of just 0.6%, indicating a market overwhelmingly favouring landlords.
The 10 strongest rental markets
Market | Median weekly rent | Year to October 2012 change |
Perth units | $470 | 27.03% |
WA country units | $375 | 25% |
Perth houses | $480 | 20% |
Darwin units | $515 | 19.77% |
Northern Territory units | $495 | 19.28% |
Brisbane houses | $450 | 18.42% |
Sydney units | $525 | 16.67% |
Melbourne units | $415 | 15.28% |
Queensland country units | $380 | 15.15% |
NSW country units | $335 | 13.56% |
Source: Residex
The list contains only two detached house markets with the other strongly performing detached housing rental market being Brisbane houses, where weekly rents have risen more than 18%.
Weekly rents for Brisbane unit have risen by only half that of houses (9.72%) which the current surge in new apartment developments in inner Brisbane most likely a factor.
SQM Research figures show the Brisbane vacancy rate easing slightly from 1.5% to 1.6% over October, but still well below the balanced market position of a 3% vacancy rate.
A year ago the Brisbane vacancy rate was 1.8%.
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