Rents rise by double rate of inflation
Rental costs across Australia's capital cities have risen at more than double the rate of inflation over the past five years, new research shows.
According to rpdata.com's June 2010 Quarterly Rental Review, Vaucluse in Sydney's eastern suburbs witnessed the highest growth rate in median house rents during the last year to June with a 35.4 per cent lift in weekly rents to an average of $1,625.
Explaining the result, McGrath Real Estate's Michael Conolly suggested that in the aftermath of the global financial crisis, highly paid executives had moved back to Australia or opted for temporary accommodation while having home renovations done during the year.
Indeed, Mr McGrath told the Australian that such executives had chosen Vaucluse because of its good access to some of Sydney's most exclusive schools.
Rising rental costs may also have inspired some Aussies to compare home loans in recent years in a bid to get on the property ladder. Rpdata.com's rental review found that while Vaucluse saw the sharpest increase, the worst performer during the last year to June was Perth's "prestige suburb" of Applecross.
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