Australia rental costs increasing

Individuals with a property investment down under may be interested by news that rising house prices in the country are having a knock-on effect on real estate rental prices.

Australian Property Monitors has predicted that there may be a sharp rise in the cost of renting property in the country, with a growth of ten per cent cited by the end of the year.

Already in 2010, rents have increased by 1.5 per cent, with property in some regions - such as Darwin - jumping by ten per cent compared to the previous quarter.

Analysts have suggested that the rise could be attributed to a dwindling number of first-time buyers now entering the market - because of high costs and the expiry of government incentives.

In addition, official statistics have claimed that the gap between supply and demand for houses and apartments is set to surge over the next 20 years and will force real estate values to soar.

The gap is being blamed on the country's rising population and a lack of new builds currently in development.

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