Property shortage to push up rents

PROPERTY rents look set to rise in 2010, advises a Newstead-based property investment agent.

Grow Consulting Group managing director Ayda Shabanzadeh said the property market was looking healthy for investors but renters were likely to find it less affordable in the coming year.

"Over the course of 2009, vacancy rates slipped a little due to the boost of the first-home owners grant and low interest rates," she said.
"However, indications point to an increase in rents next year thanks to a growing population and a shortage of new developments."
Ms Shabanzadeh said a recent report showed rents across Australia were likely to rise by 5.8 per cent per year over the next three years, and by 5 per cent in Brisbane - above the 4.4 per cent average annual increase experienced between 2002 and 2008.
"New housing developments started in 2009 are at their lowest level since 1991, which is a direct result of tighter lending practices," she said.
"Not only are they very likely to experience a low vacancy rate over the duration of their investment, but their repayments have the potential to be higher due to higher rents being received."
"Values of houses and units in Brisbane are only moving in one direction, and that is up."
Ms Shabanzadeh said economic uncertainty had not affected Brisbane house prices, which have increased by 1.59 per cent. Unit prices have increased by 1.11 per cent over the past 12 months.
Ms Shabanzadeh said an undersupply of housing in Australian capitals buoyed prices during the global financial crisis.

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