 Rentals ease prices
Rents have begun to plateau somewhat in many parts of Australia, as demand slows due to home ownership increasing by record low rates.
The rising unemployment is another factor in why demand for rentals has slowed down.
Rent increases were slower in the three months to March, and then virtually stopped in the three months to June. Australian Property Monitors,
compiler of the data, says this is the biggest shift in the rental market since they began its survey six years ago. ''The
first six months of 2009 has seen the market turn in favour of
renters,'' said APM economist Matthew Bell. ''The absence of any rental
growth in the June quarter across major capitals follows a noticeable
slowing in the rate of increase in the March quarter.''
The global financial crisis has allowed for lower interest rates and offers encouragement for those wishing to move out of renting and buy their own home, and will bring relief to the owners of rented property as their repayments come down.
Interest rates remained at 3 per cent this month. The Reserve Bank is keeping official rates at their 49-year low of 3 per cent in order to help the housing market and boost home loans. At the same time, the Russ government's boost the first home owner grant is encouraging young people into the market for the first time.
Australian Property Monitors said back in March that lower interest rates might just give renters "real options to
buy their own home due to improved housing affordability."
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