The country’s most expensive rental markets have just done the unthinkable – become even more expensive.
APM’s Rental Price Series quarterly report today indicated that in the three months to September, Sydney asking rents for houses reached a record $520 per week.
The rise came on the back of strong 4% growth, but even at now record levels Sydney rents are still only second to Darwin.
Median asking rental prices in Darwin are currently $700 for houses and $530 for units, reflecting the impact of a housing shortage.
Perth median weekly asking rents for houses rose by 4.7% and by an extraordinary 15.4% over the year.
“In Sydney, Perth and Darwin, pressure on rents will continue as declining affordability impacts on first home buyers’ borrowing capacity,” said Andrew Wilson, APM’s senior economist.
Wilson added that housing shortages and population increases would combine to keep vacancy rates in these capital cities tight.
Nationally, median asking rents for houses rose 1.6%, while units rose 0.2% over the three months to September.
Canberra, the third most expensive capital for renting, recorded a surprising fall in both house (-1.0%) and unit (-2.3%) rental prices, attributed to increased buyer activity providing less competition for rental properties.
“Rental markets will continue to produce varied outcomes reflecting the underlying drivers of each capital city,” said Wilson. “For markets such as Melbourne, subdued housing market conditions, higher vacancy rates and less competition for available properties should see rental prices remain steady over the shorter-term.”
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