The opportunity to secure positively-geared residential investments is on the increase as rents rise and prices soften, according to analysis by PropTrack.

PropTrack’s Angus Moore says the huge demand for rental properties has driven up rents substantially which means there are plenty of locations where investors can start earning good weekly returns almost immediately.

Vacancy rates remain at 1% or less in many locations, advertised asking rents have gone up by 7% in the past year, while national home values have dropped 4.5% from their peak in March 2022, according to Moore.

This, he says, is a good opportunity for landlords, particularly in regional areas.

“Regional areas often carry higher gross rental yields,” Moore says.

Although he warns some regional markets carry a higher risk of vacancy, but this is not a major concern at the moment with pressures in the market likely to make vacancies tighter this year.

He says investors should choose locations with diverse economies based on multiple major industries.