RENTAL prices in Orange continue to buck the national trend with people forced to pay over 20 per cent more for their rental unit compared to the same time last year.
Australian Property Monitors senior economist Dr Andrew Wilson told the Central Western Daily that the rental market was so robust it was unsustainable in the medium term.
“Orange is a beacon for housing market activity,” he said.
“It really is a tough gig for tenants in Orange, and there are low levels of new supply coming through.”
Australian Property Monitors’ quarterly rental report till March this year showed the median rental price of a unit in Orange is $270, an increase of 22.7 per cent on the same time last year.
Rental house prices also rose during the past 12 months till March, with the median rental price of a house now sitting at $360 a week, an increase of 12.5 per cent on last year.
Dr Wilson said the increasing demand for units may be as a result of people looking for accommodation that’s more affordable than houses.
“Rental prices are quite high in Orange, and there are significant returns for investors,” Dr Wilson said.
“In fact the yield for investors is very impressive (at around 6 per cent per annum), anything above 5 per cent is higher than the capital city averages.”
Dr Wilson said while most cities in regional NSW were experiencing a rental squeeze Orange was a standout performer.
Nationally median asking rents for houses was steady over the three months ending March with rents for units falling by -1.1 per cent.
Weekly asking rents for units either fell or were steady across all capital cities, with the biggest fall of -2.2 per cent recorded in Sydney.
“Flat or declining rental growth over the March quarter for both houses and units indicates decreased competition for rental accommodation, particularly from first home buyers that have become active as housing affordability has improved,” Dr Wilson said.