Continued low supply and high demand is driving up more than sale prices, with new figures revealing rents are also increasing rapidly. SQM Research figures show decade-low vacancy rates and growing demand has lifted weekly asking rents by 13.7% nationally in the past 12 months.

The rate of rental growth has now surpassed the rate of house price growth (13.5%) during the same period. Nationally the median rent is now $508 per week while the vacancy rate is 1.7% in a market

where a 3% vacancy rate is considered balanced.

SQM Managing Director Louis Christopher says the current rate of rental growth is the fastest Australia has experience since the seventies.

“It is fantastic for new investors,” he says. “They’re entering a market where rents have been rising and are still rising, and they can buy in on a yield well above the average lending rate right now.

“That means there are hardly any negatively geared property opportunities out there.”