Rent Rises - What is the truth?

[yieldmatters]

What rent rise did you achieve in the last year? Take the rent you were receiving as at March 07 and then compare it to the rent you were receiving in March / April 08? Further to that where is your IP?

I sense some BS on the rent price rise data out in the media. See below. According to the ABS Melbourne was the worst performing among Melbourne, Brisbane, and Sydney for rent price increases at only 5.6%. According to Residex Melbourne was the best performing among Melbourne, Brisbane and Sydney with rises of 22.95%.

Obviously this makes no sense - somebody is very wrong. All that matters is what YOU are receiving. Post here what your increase was. Lets see if its closer to ABS or Residex.

Sydney according to Residex had rent rises of 19% for the year to April 08.
Sydney according to the ABS from March 07 to March 08 was a 6% rise.

Melbourne according to Residex had rent rises of 22.95% for the year to April 08.
Melbourne according to the ABS from March 07 to March 08 was a 5.6% rise.

Brisbane according to Residex had rent rises of 6.25% for the year to April 08.
Brisbane according to the ABS from March 07 to March 08 was a 9% rise.

http://www.theage.com.au/news/national/surging-rents-put-state-top-of-nation/2008/05/16/1210765176395.html

http://www.abs.gov.au/AUSSTATS/[email protected]/log?openagent&640109.xls&6401.0&Time Series Spreadsheet&5C10FD4A3AED1C1ACA2574330018A721&0&Mar 2008&23.04.2008&Latest

 

[stumunro]

Morayfield, Brisbane
March 07 - 350
March 08 - 400
(about a 15% rise)

Macquarie Park, Sydney
March 07 - 280 (under market)
March 08 - 400
(about a 43% rise)
- When I took into account what rent shoudl have been (330) in 07 it probably still would have been about a 20% rise

 

[alexlee]

Gaythorne, Brisbane
Mar 07: 295pw
Mar 08: 330pw (+12%)

Greenslopes, Brisbane
Mar07: 260pw
Mar08: 290pw (+11.5%)
Lease is up for renewal, and I'm asking 310pw

If you ask me? 20%+ according to the stats is too high. But as you say, YM, who cares what the stats are saying. All it matters is what I'M getting.
Alex

 

[yieldmatters]

Those residex numbers are houses only and the ABS ones are all types of rents. So I thought that could be the explanation. But residex for Melbourne flats are 18.52% so that doesn't explain it. Residex claim both houses and flats well above 15% while the ABS claiming 5.6%. It's a massive gap.

ABS probably survey actual renters I expect (just guessing). Residex probably survey rental advertisements. This might be part of it as higher priced rental advertisements would take a while to flow through to actual renters (if at all - some just keep a good tenant with small increases and don't readvertise).

 

[Harris]

Rents across my melb portfolio are up 17.2% in 12 mths

Interstate are up around 14%

Harris

 

[ianvestor]

I can't count the newer properties added to my portfolio less than 12 months ago, but here's the older 2 units:

Yeronga 1br: $245 to $250 (barely moved)
Toowong 2br: $250 to $295 (now that's more like it!)

-Ian

 

[travelbug]

2 Bed unit- Sydney
$240 August 2006 (tenant moved out)
-$280 August 2007 It will be going up to at least $290

17%

1 bed unit Rent went up from 240 to $250 in October 2007
Up again last week to $265 -10%

 

[myla]

hello,

a family member in caulfield, melbourne

2-bed unit

$260 Aug 07
$275 Aug 08 5.8%

i think they given him a bit of slack as always pays rent a couple of days before,

thankyou
myla

 

[sailor]

If you ask me? 20%+ according to the stats is too high. But as you say, YM, who cares what the stats are saying. All it matters is what I'M getting.
Alex

2-bed units, Holloways Beach, Cairns
Mar07: $210
Mar08: $280 (+25%) (repaint/new curtains about $4K)

Mar07: $187
Mar08: $280 (+33%) (repaint/new curtains about $3.5K)

Mar07: $165
Mar08: $270 (+39%) (repaint/new curtains about $3.5K)

2-bed units, Innisifail, Qld
Mar07: $110
Mar08: $230 (+52%) (repaint/new aircon & kitchen & bathroom, polish floors about $20K for each of 4 units)

20% is not too high methinks for some areas. All of the above units needed either tidying up or gutting and starting again.

 

[kathryn d]

average was 6.5%
ranged from 0-18% depending on the property.

 

[Rixter]

March '07 - $1291 p/w
March '08 - $2111 p/w (+63.5%)

Across property portfolio Australia wide.

Includes an additional 2 properties over that period.

 

[Belu]

Includes an additional 2 properties over that period.

Haha me thinks that might throw those figures out a touch Rixter

 

[Rixter]

Haha me thinks that might throw those figures out a touch Rixter

Do you really think so

Ok ok...figures adjusted its a mere 15% increase.

It still doesnt prove anything tho, other than everyone situation will be different

 

[skater]

Regional NSW - Nothing
Regional VIC - $5, so next to nothing
Sydney approx 12% over all of them.

 

[lizzie]

newcastle 10-17% depending on the property.

 

[Jayro]

Our NW sydney IP was renting in March 07 for $280/wk and the rent was increased twice in the last 12 months and as of March 08 the rent is now $320/wk. Im no maths man but I think its up around 14%. I would like to see it up around the $350 mark sooner rather than later but we'll just have to see how things go.

Cheers Jayro!

 

[Andrew_A]

YM, I think the RTA is about as good as your are likely to get in terms of this data.

http://www.rta.qld.gov.au/March_quarter_2008_1_1.cfm

 

[aaarghhh]

Brisbane up 15.5%

 

[INVSTOR]

Bris- 9% due for a big rise
Perth- ave 26%

 

[chilliaa]

2 bedroom in melb cbd $450 - $480
2 bedroom in melb cbd $480 - $510

Im at the upper end of rents so its harder to achieve large % moves.
Other properties still have 6months before rent review, but i dont think i will be getting much of an increase as they are already highly priced (one is a one bedder renting for $480 per week)