Interest rate rise to affect NSW property - rents to rise again.

The Reserve bank Board decision to increase interest rates and other .25 % yesterday will slow an already fragile property market in NSW.
The NSW market has been in the doldrums since the introduction of the “Exit Tax” in 2004. Subsequent interest rate rises continue to have a dampening effect on the property market in NSW. Available stock is already at historically low levels and accommodation is at crisis levels, which has led to significant rent increases.
“Investors are likely continue to look to other states for investment opportunities as a result of the rate hike”, said John Moore, President of the Property investors Association of Australia.
“This is going to affect rents even further. Pressure on rents is going to come over the next year. Investors will be needed to investment in Sydney to encourage developers to create new property to help alleviate the accommodation crisis”, says Mr Moore.
The ABS house price growth statistics that also came out on Wednesday showed that Sydney house price growth for the last year to June 30th at only 3.0% whilst Melbourne, Brisbane, Adelaide and Perth recorded more than 10% annual growth.
The ABS report is available of the PIAA Web site at http://www.piaa.asn.au/reports For more information call John Moore on 02 9499 9499 or 0416151869.