Across Melbourne, annual rents are rising with the growing outer suburbs achieving the greatest increase in median house rents of 8.5 per cent in the 12 months from September 2008 to 2009, according to recent data from Australian Property Monitors (APM).
These rental increases are not surprising as they are being fueled by landlord’s passing on interest rate increases, a chronic shortage of affordable rental accommodation particularly in the outer suburbs, continuing population growth, an improving economic outlook and jobs becoming more secure.
APM’s breakdown of the median house rental increases over this 12 month period for weekly rents in inner Melbourne (within 10 kilometres of the CBD) grew by 6.2 per cent. Middle (10-20 kilometres) grew by around 6.8 per cent with the outer ring (20 kilometres-plus) growing by 8.5 per cent.
When looking at unit weekly rents, the outer ring suburbs have shown an even greater rise. 10.4 per cent growth compared with a 6 to 7 per cent growth for suburbs within 20 kilometers of the CBD have been recorded.