There is currently much discussion surrounding forecasting of the Australian property market in light of interest rate rises. Although there is much to be discussed, SydneyLinks is currently seeing an increase in rental prices across the suburbs.
Rental properties in the range of $300 to $800 per week have seen a definite increase in cost per week. The average price secured ranges between $25 and $100 per property, which equates to an average recovery of about 10%. As migration and international students increase in Australia, this upward trend of rental price increases is set to continue.
Typically property sale prices follow the trend of rental properties and increase sometime after. However, analysts are currently predicting a temporary drop of property sale prices over the next 12 months due to interest rate rises.
CoreLogic founder and research director, Tim Lawless, has indicated this prediction is likely to increase interest from property investors. This activity is hoped to help taper the predicted fall in property prices.