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.

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