Sydney's top five regions for rental growth: RP Data

Sydney's top five regions for rental growth: RP Data
Jessie RichardsonDecember 7, 2020

For investors hoping to use their properties as an income stream as well as a growth asset, some Sydney regions stand out more than others.

According to RP Data's Quarterly Rental Review, rental rates for houses in Sydney didn't move over the quarter to June, remaining at $520 per week.

While the median weekly rent for houses saw no change overall, one segment of the house rental market did grow in the June quarter. Four bedroom houses saw a 3.3% rise in rents to a median of $620 a week, while three bedroom houses stayed flat at $470 per week, as did five or more bedroom houses, which attracted $850 per week.

On a yearly basis, there was no area in Sydney which recorded a fall in rents for houses, although rents were flat for the year in the Fairfield-Liverpool region, at $450 per week. The Lower

Northern Sydney region saw a 10.4% jump in rents for the year, the biggest increase of any Sydney region and well above its own five year average of 6.7%. Its Median rent per week is now $900.  

However, some growth was seen in the unit rental markets, with rents rising by 2% over the three months to June to a median of $500 per week. All unit types saw an increase for the quarter, with one bedroom units increasing by 1.1%, two bedroom units recording a 3.1% rise and rents for three bedroom units increasing by 3.5%.

The median weekly rent for units in Outer Western Sydney fell by 2.9% over the year to June - the region was the only Sydney area to see a yearly decrease in rents. The strongest regional rental performance for the unit market was seen in the Northern Beaches, where the Median rent climbed 5.6% over the year, and Inner Sydney, where rents grew by 5.1%.

The top performing regions for rental houses over the past year

The following five areas had the strongest year on year growth in rents for Sydney houses.

  1. Lower Northern Sydney

    With 10.4% year on year growth in the median weekly rent, Lower Northern Sydney outperformed every other Sydney region's rental house market. 

  2. Inner Sydney

    The median weekly rent for a house in inner-Sydney is now $750, up 7.1% from the same time last year. The area's rental market has shown consistent growth, with five year average rental increase of 6.4%. 
  3. Northern Beaches

    Sydney's Northern Beaches have seen the median weekly rent for houses increase by 5.9% for the year to $900, the same median house rent as Lower Northern Sydney. However, the area has seen a dip in recent months - in the quarter to June, house rents dropped by 2.7%. 

  4. Central Coast

    With 5.3% growth over the past 12 months, the median weekly rent for a house in the Central Coast is now $400. The region saw 2.6% quarterly growth. 

  5. Canterbury-Bankstown

    The Canterbury-Bankstown area saw its Median rent for houses increase by 5% in the past year, with 1% growth in the quarter to June. The Median rent for a house in the area is now $520. 

 The top performing regions for rental units over the past year

  1. Northern Beaches

    Units in the Northern Beaches attracted weaker rental growth than their house counterparts, with a 5.3% increase for the past 12 months. A renter can now expect to pay $550 per week for a unit in the Northern Beaches. 
  2. Inner Sydney

    Inner Sydney units recorded 5.5% growth for the year, with the median weekly rent for a unit in the region now $580. 

  3. Eastern Suburbs

    Units in Sydney's Eastern suburbs now attract a median weekly rent of $625 after a 4.2% growth for the year. The five year annual average growth for the area is 4.8%.
  4. Lower Northern Sydney

    After 3.8% growth over the past year, the region now has a median weekly rent of $625. 

  5. Inner Western Sydney

    Sydney's Inner West saw rents for units increase by 4% for the year. The past 12 months have outperformed the area's historical average - the five year annual average growth in rents for the region is 3.4%. Click to open in new window: 

Source: RP Data.

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Sydney

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