Sydney Rents Drop In Some Areas By $100 Per Week
Rental prices in some parts of Sydney have dropped by almost 10 percent in the last quarter, marking the steepest decline since 2004.
Median weekly rentals in the lower north shore dropped by $100 over the past year, according to Domain's Quarterly Rental Report with rentals now sitting at $1000.
It means that renters have a few more options to choose from, as supply hits an all time high.
The leafy lower north shore wasn't the only area to see a decrease in median weekly asking rent. The city and east (down 4.8 percent), inner west (3.2 percent) and northern beaches (3.1 percent) have all taken a tumble in the last year alone.
Domain's senior research analyst Dr. Nicola Powell puts this down to an all-time high in rental supply, largely due to apartments that were built during the property boom coming to completion.
Dr. Powell told ten daily that this largely comes down to apartment building construction.
"Tenants will find they have considerably more houses and units to choose from than this time last year," she said.
"There's a 20 percent higher choice in rental stock compared to last year."
If trends continue at the "rapid rate" seen this year, it will make landlords think twice about raising rents, and could even see some decrease in rents in an effort to attract and retain good tenants.
"It is highly likely we will see more incentives at play," she said.
An increase in first home buyers across Sydney has also contributed to this renter's market, said Powell, which is taking competition out of the marketplace.
Across the country, Melbourne has seen house and unit rental prices slow, with annual growth less than half of what had been achieved this time last year.
Brisbane, which has also seen its market impacted by increased accommodation supply, has experienced an increase in rent for both the quarter and the year, the first time this has happened in two years.
Part of that is the heightened level of inner city unit development slowing down, said Powell, but also the result of a decade of some of the highest levels of internal migration into Queensland.
Perth and Adelaide take the cake for most affordable rental units, with Perth also being the most affordable city to rent a home in.
Canberra, on the other hand, remains on par with Sydney in terms of expense, and Powell reckons this figure is going to rise.
"Supply continues to tighten with house rental numbers now at a five year low and unit rental supply hitting a two-year low," she said.
And not to be forgotten, Hobart has actually seen a huge increase in rental prices, increasing 10.8 percent for houses and 9.4 percent for units over the past year.
"The significant momentum that built in Hobart's competitive rental market over the past two years appears to be easing," said Powell, with rental stock marginally increasing.
"Despite recording the strongest annual rate of growth of the Australian capital cities, the pace of growth is now slowing."
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