Rental prices are on the rise across Australia with units in particular delivering exciting rental returns.
According to Australian Property Monitors, unit rental prices rose by 2.3 per cent throughout the March quarter, reflecting high demand in most of the capital cities.
Over the year unit rentals are up 4.9 per cent, compared to just 1.3 per cent for houses.
According to the rental report, unit rentals grew strongly in most capitals, particularly Darwin (4.7 per cent) and Melbourne and Perth (both 2.9 per cent); only Brisbane and Hobart were flat.
“Units in particular have seen a major shift in demand, with chronically low vacancy rates for inner-city residences in most capitals intensifying competition amongst prospective tenants for available properties,” said APM chief economist Andrew Wilson.
APM’s report mirrors that of RP Data released last week, which also observed a strong increase in unit rental prices, compared to houses.
According to RP Data, unit rents have increased at an average of 7.9 per cent over the past five years, compared to an average annual rate of 7.1 per cent for houses.