A rent rise in the March quarter is down to interest rate increases, one expert says.
An increase in the
interest rate has led to a rise in rent in the March quarter, according to one industry expert.
Australian Property Monitors noted the national rents rose by 1.5 per cent in the period, faster than the previous three months, BusinessDay reported.
Matthew Bell, an economist for APM, said a short supply of houses being built was not helping the vacancy rates and pointed to Sydney and Melbourne as two areas that are in need of extra rental properties.
He added: "'The factors that kept a lid on rents in most cities in 2009 are no longer apparent."
But rent is not the only thing to have increased since the rise in the interest rate as some banks increased their own levels after the Reserve Bank of Australia hiked up the official cash rate by 0.25 per cent at the start of April.
One of the organisations to follow suit was ANZ – which offers the ANZ Balance
Credit Card – as it increased the rate on its credit cards by 0.25 per cent.
By Kate Guthrie
