Rents across Australia jumped about 3.5% during the June quarter, pushing the national rental increase to 10%, which is the highest increase on record according to CoreLogic.
The rental increases are mostly due to the mismatch between supply and demand for units, which is pushing up prices of accommodation across the country.
Vacancy rates are plunging in Australia?s capital cities, with Sydney currently at 1.6% and 0.6% in Brisbane according to SQM Research.
This environment favours investors, who are weighing up uncertainty about sharply rising interest rates with increasing rental yields.