AAP October 11, 2012

AUSTRALIA’S top rental growth locations have been revealed and data shows there are 21 areas where prices soared by more than 40 per cent in the last year.

In an exclusive report in this month’s Australian Property Investor, the country’s 70 fastest-growing rent hotspots are profiled.

“Property investors are increasingly turning their focus to cash flow and this list is an insight into areas where rent prices are going absolutely gangbusters,” API deputy editor Shannon Molloy says.

“Over the past few years, property markets have experienced a combination of reduced investor activity, flat levels of new dwelling construction and fewer first homebuyers. As a result, demand for rental properties has increased significantly and supply hasn’t come close to keeping up.

” A chronic and long-term shortage of accommodation in a number of areas is seeing double and even triple-digit annual price growth. Experts say this sort of return will be too good for many investors to resist and will see some re-enter the market.

“Some of these areas have boomed pretty quickly. We’ve profiled an investor who was close to offloading his property in Calliope two years ago, but held on and has since cashed in on a 60 per cent increase in his return.” As expected, mining areas are represented strongly in the list – including Queensland boom spots of Moranbah and Gladstone.

“The dominance of mining areas can’t be ignored. Boyne Island near Gladstone tops the list with unit rents growing 100 per cent and house rents rising 34 per cent in a year.

“A number of Perth suburbs also make an appearance. It’s no secret Western Australia, particular its capital, are benefiting from the resources boom.

“In total, there are 23 suburbs located 30 kilometres or less from a capital city so metropolitan areas are still in high demand with tenants. Frenchs Forest in Sydney’s north ranked second – unit rents there have soared by 85 per cent in the past year.”

Affordable areas are also commanding healthy rents – 19 suburbs on the list have a median house price of less than $300,000.

Read more: http://www.news.com.au/realestate/renting/top-rental-growth-hot-spots-revealed/story-fndbatbk-1226493274106#ixzz29Kbf1KaT