06/04/2011 - 15:06

Pilbara rents stuck at $1650: report

06/04/2011 - 15:06

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The resources-rich Pilbara remains the most expensive region in which to rent a house in Australia, with rents stuck around $1,650 a week and showing no signs of slipping, according to the latest market analysis from RP Data.

Pilbara rents stuck at $1650: report

The resources-rich Pilbara remains the most expensive region in which to rent a house in Australia, with rents stuck around $1,650 a week and showing no signs of slipping, according to the latest market analysis from RP Data.

In Perth, rents bounced back to grow 2.9 per cent to an average of $395 per week, after a stagnant December quarter, RP Data's quarterly analysis of home rents indicated.

"The Pilbara region's rental market is tight and subsequently high prices are indicative of the isolated region's strong demand for housing, mainly from resource sector workers and the insufficient supply of rental accommodation," RP Data's report said.

Across Australia, residential rents increased by 1.4 per cent over the March quarter, a rise which has occurred off the back of sluggish property value growth over recent months.

Capital city median house rents are now $380/week while units came in at $375/week.

Historically, rents across Australia have increased at an average annual rate of 7.1 per cent for houses and 7.9 per cent for units.

"With limited purchasing activity based on concerns about affordability, we are likely to see increasing demand for rental properties," RP Data senior analyst Cameron Kusher said.

Mr Kusher said he was anticipating improved rental conditions over the course of the year throughout all capital cities.

""Capital city vacancy rates remain tight, first home buyers remain relatively inactive, interest rates are at higher levels and new supply coming on-line has eased markedly in recent months," Mr Kusher said.

"Limited new development during 2011 is likely to add to the upwards pressure on capital city rental rates and as a result we expect capital city rental growth to revert to around five year average levels with inner city units and outer more affordable housing stock having the strongest prospects for rental growth.

"In regional markets, the prospects for strong growth in rents are much more limited.

"Tourism markets remain week and economic drivers in many of these regions, particularly those not linked to the resources sector, are limited and are unlikely to fuel significant competition for rental stock."

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