Sydney Becomes Most Expensive City To Rent In Australia As Rents Continue To Soar
Rents continue to rise across Australia, with Sydney officially becoming the most expensive city to rent.
Data from Domain shows that a median unit costs more to rent in Sydney than a median house in every other state capital.
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Nicola Powell, Domain’s chief of research, said the Sydney rental market had experienced an unprecedented surge, with median weekly rents skyrocketing by 8.1 per cent to $670 in the June quarter, marking the fastest quarterly increase in nearly two decades.
This surge in rental prices, up 27.6 per cent or $145 from a year earlier, has exacerbated affordability issues, pushing many tenants to their limits.
“It’s highlighting the extreme affordability issues that are presented in the Sydney rental market,” Powell said.
Melbourne’s housing market has also experienced a similar situation, witnessing a 22 per cement rise in median unit rents over the past year to $500 per week.
The rent has faced a 20 per cent increase in Perth, bringing the median unit rent to $480 per week.
While house rental increases have been more subdued compared to units, Sydney still leads the way, with median house rents reaching $700 in the April-June period.
It reflected a 6.1 per cent increase from the previous quarter and a significant 12.9 per cent rise compared to last year.
Experts suggest that these rental price hikes have significantly affected the inflation rate.
Vacancy rates in the rental market remain critically low, with Perth and Adelaide recording a record-low vacancy rate of just 0.4 per cent, Brisbane at 0.8 per cent, and Melbourne and Sydney at one per cent and 1.2 per cent respectively.
“There are signs that the rental market is losing some of its pressure and turning a bit of a corner.”
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