With the recent headlines, we thought we would share some industry insights to provide some perspective.
Our world has changed significantly since the start of COVID-19 and rising costs and interest rates are not just isolated to Australia. The US, UK and NZ had already increased rates to slow inflation. So despite there being some discomfort with rate rises, it was inevitable that we return to pre-COVID levels.
We are, however, emerging as a post-COVID economy and the effects of supply and labour shortages on industries like construction are now recalibrating to set the way forward.
Rental growth is following suit. Tight vacancy rates and a shift towards more space and smaller households have increased the national average rental return by 8.7% in the past 12-months. For investors, this means that returns and higher wages are part of the equation not just the price of properties.
If you have any questions or would like to know more, please feel free to contact your friendly property consultant or call 1300 449 974.