Sydney's six strong rental suburbs - mostly inner city, but Ryde gets aboard

Six mostly inner-ring Sydney suburbs – Edgecliff, Randwick, Ryde, Newtown, Surry Hills and Neutral Bay – recorded annual rent increases topping 10% for new tenancies during the September quarter.

The average rent increase for new tenancies in the RUN Property Sydney data base was 7.7%.

It took new rentals $38 higher a week to $540 a week.

The figures are the average rent for new tenancies, not existing tenants who renew their leases.

The figures come from the latest quarterly rent report by RUN Property, Australia’s largest metropolitan property manager, which manages properties valued at more than $10 billion.

The solid rental returns for property owners in the September quarter compared with the same period last year follow similar results in each quarter over the past year, RUN Property chief executive Rob Farmer notes.

“The smart money is starting to flow back into investment property, especially now that the sales market is off the boil and there are buying opportunities out there,” Farmer suggests.

“Past experience proves that investor confidence slowly grows in the wake of improving rental yields, so there is a small window of opportunity for good buying in the next few months before the world wakes up to what is starting to evolve.

Edgecliff recorded the highest percentage growth up 13% – or $46 a week – to $403 a week.

In Sydney’s Paddington the typical new rental was $62 a week higher at $764 a week.

Ryde was the biggest performer outside the inner-ring suburbs, with an 11% jump to $473 a week.

 Source: RUN Property