| 20.01,12. 04:46 PM |
Average Sydney rental hits $500
January 20, 2012
THE median price of renting in Sydney has hit $500 a week for the first time, an industry report has revealed.
While the national asking price rose by a modest 1.1 per cent for houses and 1.4 per cent for units in the December quarter, houses in Sydney jumped 4.2 per cent and apartment rents skyrocketed by 4.5 per cent in the same quarter, the Australian Property Monitors Rental Report shows.
The report for the September quarter showed Sydney rents for houses were $495 a week and $450 for units.
Senior economist for APM Dr Andrew Wilson said increasing competition for properties, particularly from homebuyers "unable or unwilling" to enter the property market had resulted in rising rents for all dwellings over the last quarter.
"After flat results over the previous two quarters, landlords have capitalised on the high competition in the marketplace and are charging a premium for their properties," Dr Wilson said.
The news of rising rental prices comes after almost a year of softening Sydney property prices.
"It is expected that, as the housing price cycle bottoms out and confidence returns, we will see increased buyer activity in Sydney, Perth, Brisbane and Canberra through 2012. That will take some pressure off the rental markets in these capital cities," Dr Wilson said.
He said that many capital city rental markets had been characterised by "chronically low vacancy rates" and, coupled with ongoing low levels of new housing construction, the upward pressure on rents would continue.
"The trend for increased demand and associated higher rental increases for units compared to houses generally reflects the requirement of tenants to secure more affordable accommodation as well as a growing lifestyle choice for smaller-sized inner-city dwellings located close to established urban infrastructure," Dr Wilson said.
Canberra appeared to be the big winner - with rents for houses jumping by 6.4 per cent in the final three months of last year.