Rents have dropped in Orange.
RENTAL prices have “flatlined” in Orange making it cheaper to rent a house and unit now than it was this time last year.
Australian Property Monitors’ quarterly rental report for December, released last week, shows the median weekly rental asking price of a house in Orange is now $350, having dropped from $365 the previous year.
The median rental price of units has also dropped from $260 last year to $250 this year.
Australian Property Monitors’ senior economist Dr Andrew Wilson said the figures were good news for renters.
“The figures probably reflect the fact that rents have been rising in Orange in the last couple of years prior to this,” Dr Wilson said.
“The capacity for tenants to continually meet the rise is not there.”
Dr Wilson said first-home owner buyers had been particularly active at the end of last year which also took the pressure off the rental market.
“Buying activity is increasing in Orange,” he said.
“There’s also a perception that now is a good time to buy.”
Dr Wilson said there had also been a number of newly constructed units and houses hit the market in recent months which had helped with supply.
“While it’s good news for tenants the yields are still good for investors,” he said.
Nationally the median rental asking price of both houses and units remained stable.
The median rental price of a house in Sydney remained steady throughout the year settling at $500, however units rose by 2.2 per cent per cent to $460 per week.
Melbourne’s rental market remains the most tenant-friendly of all the major capitals, with stagnant rental growth for units over 2012 and house rentals continuing to decline by 1.4 per cent to $360 per week.
“The upward pressure on rents is set to continue in markets such as Perth, Brisbane and Darwin with Sydney also set to resume rental growth in 2013 for both houses and units,” Dr Wilson said.
tracey.prisk@fairfaxmedia.com.au