Rents rise across the country
Chris Zappone
November 18, 2009 - 12:08PM
Rents on houses and apartments climbed nationwide throughout the year, even as low interest rates and the Federal First Home Buyers Grant boost lured more people into home ownership, a report shows.
Nationally, rents on houses increased 3.4 per cent to $422 a week over the 12 months to October, while they rose 4.1 per cent on apartments to $409, rpdata.com said today. Rose Bay in Sydney's east posted the biggest rises for houses, with rents jumping nearly 60 per cent.
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Buyers no longer loyal in home loan search
Rpdata.com research analyst Cameron Kusher said that compared with previous years, the increases had slowed partially because the first-home buyer activity has eased some of the pressure on the rental market.
''With the First Home Buyers Grant Boost being wound back and mortgage rates rising, we anticipate that more people will be forced to remain in the rental market,'' Mr Kusher said.
Rents on houses in Rose Bay jumped 58.3 per cent with the median weekly advertised rents rising to $950 from $600 a year ago. For units, Brisbane's West End saw the biggest jump in the country over the year, rising 39.4 per cent to $460 a week from $330 a week.
The rent increases came even with the number of home loans rising - jumping 5.1 per cent in September alone - helped by first-home buyers who made up more than one-quarter of borrowers, the Australian Bureau of Statistics said this month. The grant was halved at the end of September, days before the Reserve Bank began raising interest rates.
In a separate release, the Housing Industry Association said Australia is likely to be 50,000 homes short of demand this year despite a 9 per cent increase in housing starts forecast for 2009-10. That shortage is likely to last until at least 2012, the HIA said.
Also out today are figures showing the hourly pay rates have risen 0.7 per cent in the September quarter, and 3.6 per cent from a year earlier.
Kingswood spurt
NSW's biggest rise in apartment rents occurred in Kingswood where they rose 30 per cent, with the median weekly rent increasing to $260 from $200 over the year.
Among suburbs leading house rent gains is Bronte, where the weekly take rose 42 per cent to $1250 from $880, while Gunnedah's rose 27.8 per cent to $230 from $180 over the year.
House rents in Concord West rose 26.7 per cent to $545 from $430, while they increased 23.4 per cent in Riverview to $950 from $770.
Other unit rent increases in the state include Forster, where rents rose 24 per cent to $223 a week. Meadowbank rents rose 18.8 per cent to $380, while in Rushcutters Bay, unit rents rose 18.5 per cent. In Concord, they increased by 18.4 per cent in the year to $450.
Toorak, Ballarat
In Victoria, the most expensive house rental neighbourhood was the Melbourne suburb of Toorak, where average median rent rose 43.8 per cent to $1280, from $890.
For units, the biggest jump in weekly rentals for the state came in regional Victoria, with Wendouree in the former gold-mining mecca of Ballarat posting a 38.5 per cent surge to $180 from $130.
Elsewhere in the state, Gisborne house rent increased 21.2 per cent in the year to $315, while in Moorabbin the prices rose 21.1 per cent to $460.
Beaumaris in Melbourne's bayside saw house rents jump 20.9 per cent to $695 on a median weekly basis. Daylesford in regional Victoria reported house rents jumping 20.4 per cent to $280.
Other areas posting big rises in rents included Niddrie in northern Melbourne experienced a 27.3 per cent rise in unit rents to 27.3 per cent.
Moorabbin apartment rents increased 25.6 per cent to $445 weekly, while in Sandringham they increased 23.6 per cent to $445. Morwell, in regional Victoria, saw unit rents increase 21.7 per cent, to $140.
WA, Queensland, ACT
Rents on houses in the Perth suburb of Trigg rose the most in Western Australia, 26.3 per cent in the year to October to $505 from $400, while units in beachside Cottesloe rose the fastest, or 21.9 per cent to $488 from $400.
In Queensland, the suburb of Bulimba experienced the fastest rising house rents, 44.4 per cent to $650 from $450.
In the Australian Capital Territory the median house rent rose 41 per cent, to $1,100 from $780, while units in Braddon increased the quickest for the region, gaining 9.8 per cent to $450 from $410.
RBA watching
In what may be a mixed blessing for many house hunters is the Reserve Bank's interest in the increasing cost of housing to the overall economy.
Home prices have increased 4.2 per cent in both the June and September quarters, lifting rents in the process.
RBA board "members noted the weak outlook for construction of apartments, in contrast to the current strong population growth," the central bank said in the minutes of its November meeting, released yesterday.
"Among the possible causes discussed were the roles played by tighter lending standards on the part of banks and the costs of new development from the zoning and approvals processes."
The RBA's interest may translate into higher interest rates if the supply issues aren't resolved and rising house prices threaten to push prices higher across other sectors of the economy.
Financial markets this morning were rating another rate rise in December as a three-in-four chance when the RBA board next meets, according to Credit Suisse data.
Chris Zappone
November 18, 2009 - 12:08PM
Rents on houses and apartments climbed nationwide throughout the year, even as low interest rates and the Federal First Home Buyers Grant boost lured more people into home ownership, a report shows.
Nationally, rents on houses increased 3.4 per cent to $422 a week over the 12 months to October, while they rose 4.1 per cent on apartments to $409, rpdata.com said today. Rose Bay in Sydney's east posted the biggest rises for houses, with rents jumping nearly 60 per cent.
Tell us your experience: go to comments
Buyers no longer loyal in home loan search
Rpdata.com research analyst Cameron Kusher said that compared with previous years, the increases had slowed partially because the first-home buyer activity has eased some of the pressure on the rental market.
''With the First Home Buyers Grant Boost being wound back and mortgage rates rising, we anticipate that more people will be forced to remain in the rental market,'' Mr Kusher said.
Rents on houses in Rose Bay jumped 58.3 per cent with the median weekly advertised rents rising to $950 from $600 a year ago. For units, Brisbane's West End saw the biggest jump in the country over the year, rising 39.4 per cent to $460 a week from $330 a week.
The rent increases came even with the number of home loans rising - jumping 5.1 per cent in September alone - helped by first-home buyers who made up more than one-quarter of borrowers, the Australian Bureau of Statistics said this month. The grant was halved at the end of September, days before the Reserve Bank began raising interest rates.
In a separate release, the Housing Industry Association said Australia is likely to be 50,000 homes short of demand this year despite a 9 per cent increase in housing starts forecast for 2009-10. That shortage is likely to last until at least 2012, the HIA said.
Also out today are figures showing the hourly pay rates have risen 0.7 per cent in the September quarter, and 3.6 per cent from a year earlier.
Kingswood spurt
NSW's biggest rise in apartment rents occurred in Kingswood where they rose 30 per cent, with the median weekly rent increasing to $260 from $200 over the year.
Among suburbs leading house rent gains is Bronte, where the weekly take rose 42 per cent to $1250 from $880, while Gunnedah's rose 27.8 per cent to $230 from $180 over the year.
House rents in Concord West rose 26.7 per cent to $545 from $430, while they increased 23.4 per cent in Riverview to $950 from $770.
Other unit rent increases in the state include Forster, where rents rose 24 per cent to $223 a week. Meadowbank rents rose 18.8 per cent to $380, while in Rushcutters Bay, unit rents rose 18.5 per cent. In Concord, they increased by 18.4 per cent in the year to $450.
Toorak, Ballarat
In Victoria, the most expensive house rental neighbourhood was the Melbourne suburb of Toorak, where average median rent rose 43.8 per cent to $1280, from $890.
For units, the biggest jump in weekly rentals for the state came in regional Victoria, with Wendouree in the former gold-mining mecca of Ballarat posting a 38.5 per cent surge to $180 from $130.
Elsewhere in the state, Gisborne house rent increased 21.2 per cent in the year to $315, while in Moorabbin the prices rose 21.1 per cent to $460.
Beaumaris in Melbourne's bayside saw house rents jump 20.9 per cent to $695 on a median weekly basis. Daylesford in regional Victoria reported house rents jumping 20.4 per cent to $280.
Other areas posting big rises in rents included Niddrie in northern Melbourne experienced a 27.3 per cent rise in unit rents to 27.3 per cent.
Moorabbin apartment rents increased 25.6 per cent to $445 weekly, while in Sandringham they increased 23.6 per cent to $445. Morwell, in regional Victoria, saw unit rents increase 21.7 per cent, to $140.
WA, Queensland, ACT
Rents on houses in the Perth suburb of Trigg rose the most in Western Australia, 26.3 per cent in the year to October to $505 from $400, while units in beachside Cottesloe rose the fastest, or 21.9 per cent to $488 from $400.
In Queensland, the suburb of Bulimba experienced the fastest rising house rents, 44.4 per cent to $650 from $450.
In the Australian Capital Territory the median house rent rose 41 per cent, to $1,100 from $780, while units in Braddon increased the quickest for the region, gaining 9.8 per cent to $450 from $410.
RBA watching
In what may be a mixed blessing for many house hunters is the Reserve Bank's interest in the increasing cost of housing to the overall economy.
Home prices have increased 4.2 per cent in both the June and September quarters, lifting rents in the process.
RBA board "members noted the weak outlook for construction of apartments, in contrast to the current strong population growth," the central bank said in the minutes of its November meeting, released yesterday.
"Among the possible causes discussed were the roles played by tighter lending standards on the part of banks and the costs of new development from the zoning and approvals processes."
The RBA's interest may translate into higher interest rates if the supply issues aren't resolved and rising house prices threaten to push prices higher across other sectors of the economy.
Financial markets this morning were rating another rate rise in December as a three-in-four chance when the RBA board next meets, according to Credit Suisse data.