Sydney’s rents still highest in the land
Sydneysiders pay the highest weekly rents in the country but the pace of rent rises has eased to its slowest pace since 2009, while rents in Hobart have surged.
Rents in Sydney rose 0.5 per cent over the first three months of the year to $582 a week, the most sluggish first-quarter growth since 2009, according to a new quarterly report by researcher CoreLogic.
Over the past year, Hobart had the fastest rental growth at 11.7 per cent to a weekly median $410, while Adelaide had the cheapest weekly rent of the capital cities at $374.
The rental market in most capital cities had softened, with values largely rising more slowly, according to CoreLogic analyst Cameron Kusher.
“From an investor’s perspective, large new housing supply additions and slowing rental growth means that they will need to find ways to differentiate their properties from others,” Mr Kusher said. “Whether that is on rental cost or by renovation, we would expect that competition for tenants in most capital cities will increase.”
CoreLogic found rental growth in regional markets was higher than that in the capitals, where increases slowed in the March quarter.
In southeast Tasmania, rents soared 46 per cent over the year, South Australia’s outback had a 13.9 per cent increase in weekly rent, and tenants in Queensland’s Mackay-Whitsunday region paid 12 per cent more.
In a separate report SQM Research found the national residential vacancy rate slipped to 2.1 per cent in March, down from 2.3 per cent a year earlier.
Only Sydney saw vacancy rates ease over the 12-month period from 1.7 per cent in March 2017, to 2.3 per cent last month.
SQM Research managing director Louis Christopher said there was every indication rents would continue to climb in the Victorian capital.
“Official numbers show Melbourne expanded by over 120,000 people in the last 12 months so that is why, despite the big increase in construction and completion in dwellings, Melbourne is still not having an oversupply of properties,” Mr Christopher said.