Several eastern city suburbs have recorded rental increases of more than 10% in the last year, suggesting rental growth is still on the up.
Figures from property manager RUN Property have revealed that inner city rents have soared in the last 12 months, with Sydney's Neutral Bay showing the largest increase of 12.1%,
Other Sydney suburbs that showed significant increases include Glebe, Kogarah, Randwick and Potts Point, which all recorded rent rises of 11%. The average Sydney rent has increased by 7.8%, taking the average weekly rent to $534.
In Melbourne, Armadale, Glen Iris and Kew saw with rent increases of at least 10%, followed by Fitzroy, Essendon, Fairfield, Brunswick and Moonee Ponds which all recorded rent rises of 9% or more. Melbourne’s average rent increase for new tenancies over the past year was 6.3 per cent, up to $378 a week.
In Brisbane, Nundah recorded the greatest rent increase, of 5.9%, followed closely by Clayfield, St Lucia and Logan Central, which all had increases of at least 5%. Brisbane’s average rent increase was 3.1% to $333 a week.
RUN Property CEO Rob Farmer said rising rents would boost the confidence of investors and encourage more to buy, especially during the property market’s quieter winter months.
"Rental growth has been strong and consistent over the past 18 months, so it surprises me that more investors are not taking advantage of the dip in sales activity to secure their next bargain investment," Mr Farmer said.
"Many properties are being re-let during tenants’ vacating periods, so they never actually become vacant."
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