00:02High rental yields in Alice Springs driving change in the housing market.
00:09Loads of investors have been buying in Alice due to the negative gearing basically changing
00:13and that's then created the investors looking elsewhere
00:17and Alice Springs happens to be one of those great places to look into.
00:21The average weekly rent for a three bedroom home in Alice Springs is $650
00:26while the rental vacancy rate is just 1.4%.
00:31Appealing for investors who are buying without even setting foot in the town.
00:35Well I know the first quarter there was about 40 for this one buyer's agent
00:39and they have different investors for each home.
00:41Leading real estate agents to break sales records.
00:44We have personally sold about 25 houses in the last month.
00:49Our previous record was five houses per month.
00:51So virtually overnight Australia woke up and decided that Alice Springs is the place because of our high rent return.
00:59While investors buying up homes could be good for people trying to sell their house quickly,
01:03there's concerns that for renters it could be bad news.
01:07NT Shelter says rents are already too expensive for many families.
01:11They have increased almost 5% in the June quarter.
01:15But having more rentals on the market doesn't solve the broader problem of the shortage of housing.
01:20If you have a finite supply of housing and you simply have that housing change ownership hands,
01:26you're not actually doing anything to increase the overall supply of housing.
01:31Doors open for investors at what price?
Comments