Things are looking up for some landlords, with select capital cities recording a significant rise in rents over the recent years. The same areas are expected to continue posting positive results, according to realestate.com.au.
Rents in Melbourne and Hobart have grown by over 15% over the past three years, and strong rates of growth are likely to be carried over in the next months. The finding suggests both rental demand and rent per week will continue to rise in these cities.
Sydney or Darwin, on the other hand, recorded a lower demand for rental properties. The condition in these cities allows renters to negotiate on prices.
Realestate.com.au found that changes to rental levels vary among capital cities. However, particular suburbs remain prominent with renters online.
Richmond registered the most views per listing in Melbourne at 3,500 based on realestate.com.au data. In comparison, Macleod in the outer north-east garnered only 820 views per listing.
Impact of the Labor Party’s proposed changes to tax policies
Many investors have become dependent on negative gearing and capital gains tax concessions to ensure that investing in property is feasible. Hence, the lack of these incentives could result in a large decline in investor activity. The shift could then lead to fewer available rental properties and consequently, increasing rents.
“In cities where rental prices have been rising rapidly, it means the rises [are] likely to continue and may even accelerate. While for places like Sydney where rents have been dropping over the past year, current conditions may be the best they will be for some time,” realestate.com.au said.
