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Rental prices tipped to soar

As the economy continues to grow, property analysts are predicting rental prices will start to rise.

A report by Australian Property Monitors (APM) has revealed that nationally, rents grew by only two percent in 2009, compared to an average of 12 percent growth the previous two years, providing further evidence that rental growth will start to pick up again this year.

APM economist Matthew Bell said the rental market was flat last year as a result of the weak economy, so the only way forward from here is up.

“It is clear that in 2009 rents were generally kept in a holding pattern as landlords and the market waited to see the end of the global financial crisis,” he said.

He added that while rents will rise across the board, an improved employment outlook will mean more income for renters to be able to cope with the increases.