Melbourne rent prices reach record highs in December 2015 quarter
Melbourne rent prices reported at record highs in December 2015 quarter.
The median house rent price in Melbourne has hit a record high as vacancy rates drop.
According to the domain rental report for the December 2015 quarter, the annual rent growth for houses, was 5.3 per cent, and units was 2.8 per cent.
Melbourne’s median weekly asking rent for houses reached a record $400 increasing by $10 over the December 2015 quarter.
The median unit rent was steady at $370, likely due to the higher volume of apartments coming online, especially in Melbourne’s Central Business District (CBD).
Melbourne’s eastern suburbs are leading the rental price surge. Suburbs with good schools showing having higher rental gains.
Reduced investor activity and overseas and interstate migration are thought to be among the key factors in the supply and demand equation in leading to the rental price rises in Melbourne.
Melbourne is not the only state capital city to have record high rents. Adelaide, Hobart and Canberra joined Melbourne in braking previous rental price highs. Australia’s other State capital cities were flat or decreased.
Higher rental prices are likely to make it more difficult for potential first home buyers to save a deposit as more of their income is spent on rent. This is likely to increase demand further for guarantor home loans where family help first home buyers to get into the property market and low deposit home loans.
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