Australian rents surge in capital cities
By Peter Mindenhall

Australian rents surge in capital cities

Individuals with property in Australia will be interested to learn that the cost of renting a home in the country's capital cities jumped in 2010.

And experts have predicted that further gains will be seen in this coming year, as demand continues to outpace supply, Dow Jones reports.

Residential rents in Sydney for a two-bed apartment climbed seven per cent over the last year, making the city the 13th most expensive in the world in terms of rental costs.

"All of those holders of property that benefited from house price gains are now looking at their yields and saying they haven't done much since 2009, so I'll have to bump that up a little bit," said Ben Jarman, an economist with JPMorgan in Sydney.

"They will see their soft to sideways movement in dwelling prices and cast rents up quite a bit, which will weigh on living costs and inflation."

According to the latest figures from RP Data, home sales in capital cities down under accounted for a massive 63 per cent of all purchases during November 2010, Business Spectator reported.

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