Rents set to rise in 2010
TENANTS, demand to sign a 12-month rental contract now or you’ll be facing significant rent hikes.
“As sure as night follows day local rents are set to climb, keeping pace with Reserve Bank interest rate rises through 2010,” the Coast’s Real Estate Institute of Qld chairman Alan Wetton said yesterday.
“Landlords are going to be paying higher interest rates so tenants will be charged higher rates.
“Smart tenants will right now be seeking to lock in 12-month contracts because rent rises can only be applied every six months.”
Fraser Coast rentals are currently lower than the Qld average and there is a surplus of unrented properties across the region.
“That’s because smart people took advantage of the first home buyers’ handout from the government.
“Now, with first home buyer numbers reducing, investors are becoming more prevalent.
“And the Fraser Coast is very much a prime market for realty investment.
“The last couple of months there has been a marked increase in the number of investor inquiries both locally and from investors outside the area.
“The surplus is keeping rental prices down but that won’t last.
“They’re already rising in the capital cities and we tend to follow six months behind.
“We do expect rents to increase in 2010.”
Senior property manager Donna Jenkins, from Carter Cooper Realty in Hervey Bay, said our market was usually a couple of months behind the larger city areas.
The latest median rental data released by the Residential Tenancies Authority show that rental prices are stable in Qld and in Hervey Bay in particular they are holding steady.
The RTA says that in the 2009 December quarter rents for three-bedroom houses in Hervey Bay rose from $250 to $255.
Two-bedroom units went up from $210 to $220.
REIQ figures that came out on Thursday night put two-bedroom units in the Maryborough region at an average of $165 a week and in the Hervey Bay region at $200 a week.
Burrum Heads and Howard came in at $190 a week.
Two-bedroom houses in Maryborough registered $240 a week and in Hervey Bay $255.
Burrum Heads’ and Howard’s average rentals were $240.