Although many property reports are either full of doom and gloom, or would have you believe that things have been on the up since the day the bottom fell out of the market, somewhere between the two lies the truth. There is no denying that since the global financial crisis became a reality late last year, median property value across the country have, for the most part, been falling. When trusted property analysts and figures from the likes of RP Data show this to be true, those who dispute it are looking either uneducated or untrustworthy.
Century 21 prides itself on providing clear, expert advice and currently the advice isn't to sit on your hands when it comes to buying property. In fact, figures show that rents are continuing to increase, and as I mentioned yesterday, that makes this the perfect market to be buying in.
Across the country, weekly rental rates for both houses and units are proving a very strong aspect of the market. Continuing the 2008 trend across all mainland capital cities, all property types across recorded growth in weekly rental rates. Last year, rents increase on average $41 per week for houses and $35 per week for units.
According to RP Data figures, Darwin was the standout performer in terms of rental growth during 2008 where weekly rents for houses increased an incredible 18% and unit rents climbed by 19%. Interestingly in 2009 so far, Darwin's recorded property values also had the greatest increase and maintains the country's best rental yields at 6.25% for houses and 6.44% for units.
Sydney follows just behind Darwin with median house rents increasing by 18% over the year and unit rents up 14%. Melbourne is next with rental rates for houses increasing 17% in 2008, and unit rentals 14% higher. Adelaide's increases were smaller, and rents on houses increased only 5% during 2008 and unit by 4%. Canberra's figures were similar - rental for houses increased by 4% and units by 6%.
Adelaide however was the only other capital city to record positive value growth during 2008 and as the growth looks like it might slow during 2009, it is anticipated that rental growth will increase for Adelaide during the year.
As I have said before, it's actually a great time to be buying!