Landlords face difficulties in securing rent rises from tenants

Landlords face difficulties in securing rent rises from tenants
Landlords face difficulties in securing rent rises from tenants

Sydney rents have recorded their biggest annual fall in more than a decade amid the final throws of the city’s record construction boom.

But cheaper rent may not last much longer, according to the latest quarterly Domain Rental Report.

The Sydney weekly median unit rent declined 4.6 per cent over the year to $520.
 
Renters were $25 a week better off as rents returned to 2016 prices.

Domain research analyst Eliza Owen noted Sydney’s vacancy rate had tightened to 2.9 per cent, suggesting that more rental properties are finally being leased.

Ms Owen said it could signal an end to falling rents because construction had slowed significantly in Sydney.

“Rental prices could be bottoming out in the September quarter,” Ms Owen said.

“The market will probably start to turn just because we’ve got steady population growth against a decline in construction.”

Meanwhile Melbourne’s unit rents are $10 a week higher than this time last year, at a median $420 a week.

Its apartments have become so popular that it now costs almost as much to rent one as a house, the Domain report
said.
 
The median Melbourne house rent was $430 a week, which was unchanged over the past year. 

Domain noted over the past two years Melbourne house rents have only increased by 2.4 per cent or $10.

The rental vacancy rate was also rising, from 1.4 per cent to 1.8 per cent over the past 12 months.

Canberra’s median weekly asking rent for houses has stabilised at $550 per week, Domain’s latest rental report showed.

The units median stayed at $470 per week, but year-on-year up 4.4 per cent – or $20. 

Canberra house rents remain the most expensive of the capital cities with the gap between Sydney and Canberra’s median widening.
 
Brisbane asking rents for units rose 1.3 per cent to a median $380 a week over the past year.
 
Brisbane house rents also rose 1.3 per cent to a median $405 over the same time period.

The combined vacancy rate fell 0.1 percentage points to 2.2 per cent during the September quarter.

Median asking rents for Perth houses grew 5.7 per cent in the year to September to $370 per week, which was its strongest annual growth rate since 2013.

Perth units also experienced a rise in rents year-on-year, at 3.3 per cent to a median of $310.

Tags: 
Rental market Rental Returns

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