This was a modest gain compared to Hobart’s 5.4% increase, but still better than Sydney (1%), Adelaide (1.4%) and Canberra (1.1%); and well ahead of Melbourne, Perth and Darwin which stagnated or declined.
Hobart (1.8%) and Brisbane (1.3%) also took out first and second place in unit rents with all other capitals recording zero growth or declines in unit rents. Sluggish growth is good news for renters, though perhaps not such good news for investors who want to increase their cash flow.
Is it possible to strike a win-win in a flat market? It might not be easy, but investors can consider manufacturing rental growth by making changes for which tenants would be willing to pay more.
Your Investment Property magazine suggests adding air conditioning or a dishwasher could warrant a small rental increase. While converting an internal laundry to a second bathroom, or a private dining room to another bedroom could boost rents higher again.
If that sounds like more work than you want to do to your investment property, then sit back, relax, keep your rent steady and enjoy the rate cut in the meantime.