Much to the relief of investors, Australian Property Monitors (APM) released a report this month indicating vast improvements in the national rental market. Given that 2009 yielded a mere 2% increase for median rent, this is welcome news indeed.

The anticipated surge in rent is attributed to multiple factors including the end of the first home buyers grant, continued growth in the property market, strong employment figures, low vacancy rates, and ongoing issues of low supply and high demand. In Brisbane, rents should increase by around 8%, outstripping the performance of investment properties in Sydney and Melbourne. In practical terms, this will deliver a median Brisbane rent of $400 per week, or an extra $40 per week. As far as investors are concerned, this will certainly help to ease some of the tension caused by last year’s sluggish performance.

In addition, house prices are at all-time highs in most capitals after more buying in expensive suburbs drove the strongest annual price growth in seven years- the APM December quarterly report indicates that at the top end of the market, 2009 ended with the biggest price growth since 2003. Median national house prices rose 4.8 per
cent in the December quarter, bringing the rise for 2009 to 12.1 per cent, surpassing pre-global financial crisis highs for the first time.

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