Unit rental yields increase in Sydney during 2013

1.11.13The latest release from the Australian Property Monitors (APM) has found the rental market across the nation has undergone some interesting changes during the last 12 months, which be great news for those interested in Sydney investment property.

Nationwide, the median asking wEekly rent has increased by 0.9 per cent for houses over the last 12 months, while the asking rent for units across Australia decreased slightly – dropping by 0.4 per cent.

However, Sydney underwent median unit rental growth. During the last 12 months, the median rent for houses in the New South Wales capital remained steady at $500. But the median rent for units rose by 5.4 per cent over the year.

This saw an increase from $460 only 12 months ago up to the current level of $485, which could is a great level of growth for the period – especially if the trend is expected to continue into the near future.

Strong property prices and an increase in the number of investors in the state has helped to spur this on, with Senior Economist for the Australians Property Monitors Andrew Wilson highlighting that this growth is expected to continue well into 2014.

“Increased supply generated by rising investor activity and new apartment building will continue to impact rental growth in Sydney, Melbourne and Brisbane,” said Mr Wilson in a January 16 statement.

“The trend of increasing unit rents over house rents reflects the affordability advantage of units and the preference for inner city and apartment living.”

This could present a fantastic opportunity to secure real estate in the New South Wales capital for your property portfolio for the future. As the state continues to grow in the face of population growth, providing accommodation – especially in the central business district – could become a lucrative business.

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