The Australian Financial Review --- Page: 9 : 13 February 2007 Original article by Fleur Anderson
ABIX Summary
The fall in Australian rental yields has discouraged investors. In its statement on monetary policy, the Reserve Bank of Australia said that property prices had increased by 175 per cent in the decade to 2007 while rents had risen by only 60 per cent. This had halved rental yields. Rental vacancy rates have fallen but investors are faced with low yields and limited capital gains prospects. The central bank predicts that rental yields will improve, attracting investors back to the market, but it will be at least one more year before the rental vacancy crisis improves.
