On the up: What will higher interest rates mean for real estate investors in New Zealand and further afield?
The Land of the Long White Cloud is shaping up to raise rates and the country may well be a bellwether for the Australia...
Units have seen improved rates over the past 12 months, offering better returns for investors in most capitals.
New figures from Onthehouse.com.au have highlighted that Tasmania is one of the country’s strongest markets for value growth; however, yields in the region are expected to fall.
Hobart recorded the highest level of rental rate growth for units, climbing 7.0 per cent over the past 12 months to reach $305, while houses increased by 1.4 per cent to $375.
In the ACT, units rose 2.5 per cent to $415 while houses remained unchanged at $500.
In Brisbane, units rose 1.3 per cent to $385 and houses fell 1.1 per cent to $450.
Melbourne’s units rose 1.2 per cent to $410 while houses dropped 1.1 per cent to $455.
In Sydney, units rose 0.9 per cent to $555 and houses dropped 2.3 per cent to $650.
Adelaide’s units fell 1.6 per cent to $305 while houses rose 2.7 per cent to $380.
In Darwin, units dropped 11.5 per cent to $425 while houses decreased by 6.0 per cent to $545
In, units decreased by 10.5 per cent to $385 while houses fell 5.5 per cent to $430.
Across the country, units remained steady at $420 and houses climbed 1.2 per cent to $430.
Eliza Owen, market analyst for Onthehouse.com.au, said that while the value of units in Hobart increases, rental yields are likely to fall, depending on the rate of wage growth in the region.
“Should Labor win government in the upcoming July 2 election, the Opposition Leader has pledged $150 million to the University of Tasmania and small business incentives to encourage a culture of further education, which could create long-term job and growth prospects,” she said.
“Over the next few months, I would expect to see lower rates of growth across Australian housing markets.”