Unit rents continue to show growth
WHILE the rental shortage crisis continues across the Northern Rivers, new data shows that house rental rates are holding steady while unit rents increased by 4% last year.
The report was released by real estate analysts, RP Data, last week and analysed the Richmond-Tweed Statical Division that registers a population of 244,000 and an annualpopulation growth of 1.3%.
The report says median rents for houses across the region were currently $370 per week, while unit rents were $323 per week.
It said house rents recorded no change over the past 12 months, however, over the past five years house rents have increased by an average 5.7% annually.
Meanwhile unit rents have increased by $13/week over the year (4% per annum), while over the past five years unit rents have increased 5.2% annually on average. Kyogle returned the highest yields while Ballinarecorded the lowest yield.
The current indicative gross rental yield for houses sits at 4.6%, while unit yields are slightly higher at 4.7%.
Yields for both houses and units peaked at 5% during September 2009.
“Yields have started to show some improvement recently and with capital growth expected to be minimal over the short-term, rental yields are likely to show further improvement over the next 12 months,” the report said.