Today’s CPI figures showed rents increased by 6.4% in the past year, the fastest annual growth since the early 1990s. This indicates property investors are realising excellent returns on their investment as demand for housing far outpaces supply against a background of soaring demand and limited supply for housing.
“What started on Wall Street and is now spreading internationally is a stark reminder of the vulnerability of the sharemarket,” said REINSW President Steve Martin. “It illustrates how factors beyond an investor’s control have a severe impact on their share portfolio.
“With property there is far greater control and, after all, everyone has to have a place to live whereas not everyone needs to, or wants to have, a share portfolio.”
There has been a rental drought for residential property in much of New South Wales for over a year now. This has affected Sydney in particular, with vacancy rates falling to historically low levels of less than 1%.
“Tenants sorely need property investors to come back into the market and help meet the shortfall in the supply,” Mr Martin said. “For investors, the reassuring news is that residential property provides a regular and stable income.”