To the relief of many tenants rental price growth has slowed over the last quarter. The capital cities have recorded zero growth over the quarter with rental prices in Sydney, Melbourne, Brisbane, Perth and Adelaide remaining steady. The only capital to record growth was Canberra increasing by a modest 1.2%.
Darwin has been the star performer over the last 12 months with rental prices for houses increasing by 11% for the 2008/09 year and now averaging $500 per week. Sydney has recorded a 7.1% increase for the year with average house rentals at $450 per week. Darwin has also topped the list for apartment rental growth with an 11.7% yearly increase.
Australia’s population is growing at a rate of 1.7% annually with an expected increase of 370,000 people in the next 12 months. Demand for rental property will not decrease in the foreseeable future with demand currently outstripping supply. Purchasing a well positioned and well priced investment property is an excellent long term wealth creation strategy and I strongly recommend properties in the Capital cities.