Renters are paying record or near record rents in most capital cities and it looks like things are set to get worse, especially for Sydneysiders.
Strong demand for rental properties continues to outstrip supply, despite an increase in dwelling construction and record levels of property investor activity in 2014, figures from Domain Group show.
The national capital city vacancy rate was just 2.4 per cent in December – two per cent for houses, three per cent for units.
That’s keeping rents in most capitals at or near record levels, and the pressure doesn’t look like it’ll be easing any time soon, Domain senior economist Andrew Wilson says. “
Upward pressure on rents is set to continue through 2015, particularly in the robust Sydney market where underlying demand continues to outstrip supply,” Dr Wilson said.
“Increased supply of new units in Brisbane and Melbourne will, however, continue to provide more choice for tenants with lower rental growth a prospect.”
The most expensive city for rental properties was Darwin, with tenants forking out more than twice what they would have to pay in Hobart.
Dr Wilson said high and rising rents, tight vacancy rates and consolidated gross yields were offsetting recent concerns among regulators about the high levels of property investor activity, particularly in Sydney.
“With residential investment markets remaining reasonably balanced and prices growth set to continue to moderate in 2015, the prospect of the introduction of market constraining macro-prudential controls on investment lending is clearly diminishing,” Dr Wilson said.
MEDIAN CAPITAL CITY WEEKLY RENTS
* Darwin – houses $660, units $550
* Sydney – houses $520, units $500
* Perth – houses $450, units $390
* Canberra – houses $450, units $390
* Brisbane – houses $400, units $370
* Melbourne – houses, $380, units $360
* Adelaide – houses $350, units $290
* Hobart – houses $320, units $270
Source: Domain Group (December quarter 2014)