The latest Real Estate Institute of Australia statistics show that rental vacancy rates have fallen in almost all capital cities as renters scramble for accommodation and force up rents. These lower vacancy rates are due to a severe shortage of rental stock as new investors are currently avoiding the property markets as well as poor housing affordability forcing many would–be home purchasers to turn to the rental markets. These dual forces have pushed up rentals. This finally delivers good news for landlords, some of whom have had to drop the rentals for their investment properties over the last few years to meet the market. The figures show Melbourne had a vacancy rate of 1.8%. Leading independent property consultancy Metropole Property Management reports its lowest vacancy rates on record, with a queue of prospective tenants every time a property is open for inspection. Vacancy rates fell in both Sydney and Brisbane by 0.6%; to 2% and 1.5% respectively. Apartments recorded the strongest growth in the quarter. The booming Perth market continued to lead the country, with apartment rents soaring 29.4% in the year to March. In Brisbane apartment rentals rose 8.7% to $250 a week, up an impressive 11% for the year. Rental growth for apartments in Melbourne rose 4.5% and Sydney had a more moderate increase of 3.4%. With little new investor stock likely to come on the rental market over the next year and affordability unlikey to ease with the prospect of another interest rate increase later in the year, rents in our capital cities are likey to continue rising strongly over the next 2 years. Melbourne and Sydney rentals are likely to rise by between 6% and 8% for the next two years, while Brisbane rental increases could be stronger – up to 10% over the next 12 months. Source From domain.com.au