whether rents rise is dependent on the alternative costs associated with owning.
if interests do remain low, then there will be a shift with people thinking thatthey should buy. Remembering most people are not in it for an return but rather security. all they know, rightly or wrongly, that over time property has been a good investment. people will, for peace of mind and security will purchase the right property if the costs are similar to renting.
Some will pick up bargins, some will pay a little less than market, while others will wait for even more falls.
If there is no growth expected from housing, housing returns will need to improve from either increased rents or reduced prices but same rents. As to which will depend on how the economy is going. NSW's construction industry is absolutely stuffed and there is an ever increasing deficit in housing stock.
agian whether the shortfall in NSW translates into higher rent or higher prices or more so a recovery in prices, not sure.
just do your research before buying, but hoping for 40% falls based on statistics may not occur.
