Rental Vacancy Remain Bouyant

by Joy Manginsay 13. December 2011 17:50

According to acting President of Real estate Institute of Australia (REIA) Pam Bennet, “Based on the data between June 2001-2006, rental affordability didn’t change at all, while the proportion of income required to make home loan repayments increased 8.1% over the same period. However over the past 5 years, the proportion of income required to meet rent payments has grown by 3%, whilst the proportion to meet home loan repayments has only grown 1.4%.” It shows that year 2011 is a bit of challenging year in residential property market because the rental market has maintained it's affordability in comparison to home purchase. Statistics from the REIA shows that renting is a more affordable option than buying; rental affordability has declined at a faster rate in the past 5 years than affordability of buying a home. If the residential purchasing market becomes less affordable more people choose to rent rather than to buy because rental market is unstable. Maybe if the demand of rental properties increases, there is possibility that rental prices may increase.

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