INVESTORS will be smiling but renters could be feeling the pain if the prediction of rising rents from Australian Property Monitors eventuates.
Brisbane rents are tipped to outperform Sydney and Melbourne with growth of 8 per cent predicted this year.
Australian Property Monitors forecasts Brisbane median house rents will increase nearly $40 a week up to $400 a week by the end of the year.
Brisbane's median house rents will outstrip that of Melbourne if the forecasts are correct.
APM economist Matthew Bell said last year was the weakest for rent growth nationally since 2002.
The national median increased just 2 per cent, compared with 12 per cent in 2007 and 2008.
Mr Bell said an improved jobs outlook meant renters would be in a better position to manage predicted increases during the year.
Brisbane and Perth are tipped to show the biggest percentage rate rises as their property markets catch up on growth already seen in Sydney and Melbourne.
Sydney rents are expected to increase by more than 4 per cent to $500 a week and Melbourne up 5 to 7 per cent to about $385 a week.
Mr Bell said improving employment, the end of the first homebuyers boost and low vacancy rates all pointed towards rising rents.
"On the supply side, there simply aren't enough new properties being built for investment purposes to meet increased demand," Mr Bell said.
He said landlords were also facing rising costs and predicted asking rents would rise steadily throughout the year.
But recent increases in house prices meant yields for investors were unlikely to grow much.
"Yields hit their peak in March 2009 and are unlikely to move very far in 2010," Mr Bell said.
RPData said some Brisbane suburbs had strong rental growth in 2009.
Researcher Cameron Kusher said Bulimba in Brisbane's east experienced the largest growth with median advertised rents jumping from $450 a week for a house to $650 a week, up 44.4 per cent.
Mining areas such as Blackwater, Dysart and Moranbah also experienced big jumps in rents.