A Finance blog by Paul Bennion.
An undersupply in rental properties in Darwin and Perth is pushing weekly rents higher than anywhere else in the country.
According to the latest figures from Australian Property Monitors, weekly rents in Perth and Darwin are now increasing at the fastest rate in Australia. In Darwin, the median weekly asking rent for units surged by nearly 20% in 2012, while in Perth weekly rents surged by 14.3%. In contrast, other major capital cities recorded modest or stagnant rent price increases.
Perth and Darwin now also offer property investors the highest rental yields for units of any capital cities in Australia at 5.77% and 6.22% respectively.
“In line with these figures, DEPPRO is also recording very strong activity by property investors in these cities. Perth is now the standout performer, achieving the highest turnover for tax depreciation reports of all DEPPRO offices in Australia,” said Paul Bennion, Managing Director of DEPPRO.
“The number of tax depreciation reports undertaken in Perth and Darwin increased by more than 30% during the first months of 2013, compared with the same period in 2012.”
“In particular, we have seen a surge in activity by external investors purchasing properties in Perth and Darwin because of the high rental returns properties in these cities deliver.”
Bennion added that the second half of 2013 should see the property markets in other capital cities also improve, as a result of the impact of lower interest rates.
“In particular, the Brisbane property market is primed for growth due to the fact that property prices have undergone a downward market correction over recent years and the market is approaching the bottom of tis current property cycle,” Bennion said.
Median Weekly Asking Rents – Units