RENTS have jumped 25 per cent

Date: 14 August 2008 | Source : Couier Mail Online

RENTS have jumped by as much as 25 per cent in the past year as a result
of higher mortgage rates and a weak building sector, a new report shows.

The Australian Property Monitors (APM) June quarter rental survey shows
double-digit rent increases in most of the major cities in the past 12
months.

Housing rent in Brisbane jumped by 13 per cent in the year to June to a
median $350 a week, while rents for units were up 3 per cent to $300.

The biggest rises were in in Perth and Sydney. Units in Perth soared by
25 per cent to $350 a week, while in Sydney they jumped 11 per cent to
$400 a week.

A house to rent in Sydney now costs a median $420 per week after an
increase of 15 per cent in the past year, while in Perth median house
rents increased 17 per cent to $350 per week.

The cheapest city to rent in is Hobart.

Units in Hobart are an average $235 per week, even after a seven per
cent rise over the year, while for a house the rent is $285 per week, up
six per cent.

APM general manager Michael McNamara said rising rents are being driven
by higher mortgage rates.

``On one hand landlords are trying to offset increased costs and on the
other hand high interest rates deter renters from making the shift into
home ownership,'' Mr McNamara said.

``The combination of Generation Y leaving home, strong migration
patterns and a weak building sector is intensifying demand.

``The shortage of affordable accommodation will no doubt add to the
growing number of displaced renters who cannot afford to live in
well-located areas.''

Mr McNamara said those capitals worst affected by deteriorating housing
affordability were also the capitals where tenants are experiencing
rapidly rising rent.

``Perth and Sydney are the most expensive capitals for home buyers and
they are also the capitals where tenants are under the most pressure
from rising rents,'' he said.

MEDIAN WEEKLY ASKING RENTS

Houses (June 08 annual rise ) -

Sydney $420 (15%)
Melbourne $350 (17%)
Brisbane $350 (13%)
Adelaide $290 (5%)
Canberra $410 (5%)
Perth $350 (17%)
Darwin $450 (15%)
Hobart $285 (6%)

Units (June 08 annual rise)

Sydney $400 (11%)
Melbourne $310 (13%)
Brisbane $300 (3%)
Adelaide $240 (9%)
Canberra $385 (10%)
Perth $350 (25%)
Darwin $350 (9%)
Hobart $235 (7%)

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RENTS have jumped 25 per cent