Rents to rise for at least 3 years
Pressure on rents is not likely to ease any time soon as the latest figures show that the pace of housing construction is not keeping up with demand. Data from the Reserve Bank shows that work started on 37,647 homes in the September quarter, 1.3 per cent higher than the June quarter but 0.8 per cent lower than for the same period last year. Industry estimates that annual demand required 180,000 new homes to be built every year but over the 12 months to the end of September work commenced on only 151,418 homes. BIS Shrapnel managing Director, Robert Mellor, predicts that rents across the eastern states will probably go up by between 7 and 10 per cent each year for the next three years.