TPN Credit Bureau’s recent Residential Rental Monitor reported that although rising interest rates are not encouraging for consumers – particularly those with high levels of debt – it may be just what the rental market requires right now to improve demand.
The Index is based on the perceptions and experiences of estate agents and landlords of the residential rental market, said TPN. Vacancies are expected to decrease further to below 8% by the end of the second quarter as consumers continue to face financial pressure, TPN said. “Even with improved rental escalations, rental property yields for sectional title properties remained flat at 10.1% while the yield on full title properties dropped from 7.1% to 7% in the first quarter of 2022.”
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