Rising rental yields may catch the eye of investors as the housing shortage grows and the share market wobbles.
Tim Lawless, RP Data’s national research director, said Australia’s housing shortage was likely to intensify as construction continues to fall significantly short of the levels required.
Approximately 157,000 new dwellings commenced construction in the year to June, ABS figures recently showed. This was well below the 200,000 needed, according to Commonwealth Treasury estimates.
As a result, Mr Lawless said rental rates would increase substantially.
“Rental rates for houses increased by 11 per cent over the past 12 months,” he said.
“We would expect to see rises in weekly rental rates of a similar magnitude over the coming year.”
Published: 19-09-08
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