Rents are set to soar by as much as 11 percent this year, as landlords seek to cover rising costs amid a strengthening economy.
Rents for homes across Australia increased nationally by a mere two per cent in 2009 – the weakest annual increase since 2002, the Australian Property Monitors’ Quarterly Rental Report says.
Matthew Bell, an economist and spokesman for Australia Property Monitors, predicted Sydney rents would increase by at least 4% in 2010, with the median rental house in Sydney likely to approach $500 a week in 2010.
Melbourne property rents were expected to rise by five to seven per cent in 2010.
In Perth, median home rents could hit $400 a week – a rise of 11 per cent compared with 2009.
Brisbane rents are likely to increase from an average $360 a week in 2009 to $400 in 2010 – a rise of more than 10%.
“Although rents should rise across the board, an improving employment outlook will mean more income for renters to be able to cope with these increases in 2010,” Mr Bell said.