The past year has been an exciting one for property investors in Australia, with rental income rising significantly in many cities. According to CoreLogic, the median rent for an Australian investment property rose by 10.2% in 2022, with Brisbane and Adelaide experiencing the highest increases at 13.4% and 12.9%, respectively.
City-by-City Breakdown
The city-by-city breakdown is as follows:
· Brisbane 13.4%
· Adelaide 12.9%
· Sydney 11.4%
· Perth 11.2%
· Melbourne 9.6%
· Hobart 5.3%
· Darwin 5.1%
· Canberra 4.3%.
The national vacancy rate fell from 2.1% to an incredibly low 1.2%, which means that the number of untenanted rental properties fell from 21 per 1000 to just 12. This led to tenants competing more fiercely, resulting in higher rent prices.
Rental Increases in Recorded History
The data from CoreLogic shows that between September 2020 (when this period of rental increases began) and December 2022, Australian rental rates increased by 22.2% – the largest increase in a 27-month period in recorded history.
This news is exciting for property investors, as it means higher rental returns and an increased likelihood of a positive cash flow.
What Does This Mean for You?
The rise in rental income is a great opportunity for property investors, as it means higher rental returns and an increased likelihood of a positive cash flow.
If you’re looking to invest in property, now is the time to do it. Our team of experienced finance brokers can help you find the best loan for your needs, whether you’re a first-time investor or an experienced one. We can also provide advice on the best areas to invest in and how to maximise your returns.
The rental market is a great place to be right now, and with the help of our team, you can make the most of these positive conditions. Get in touch with us today to find out how we can help you.
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Assoc. of Mort. Ind. Assoc. of Aust. (AMIAA)
Terry Boag is the founder and CEO of Peel Finance Brokers and has been providing professional and loyal service to the Mandurah and southwest area for 25 years. With a long history of financial experience, Terry is reliable and dedicated to his clients, always ensuring the highest customer service and delivering strong lender relationships.