Sydney apartment rents rising for second year in a row
Posted September 14, 2018 15:05:42 New rental listings in Sydney are expected to continue to rise for a second consecutive year, according to new data from the Australian Bureau of Statistics (ABS).
The average Sydney apartment price was up 0.3 per cent in the first quarter of 2019 from the same period last year, with an average price of $3,400 up from $2,700 in the year before.
But the average Sydney rental price has fallen 0.4 per cent from the year-ago period, with a median price of about $2.50.
It’s also a 0.2 per cent increase on the same quarter last year.
In the same year, Sydney apartment vacancies increased by about 10 per cent to about 8,000.
The latest ABS data shows that while Sydney apartments are the second most expensive in the country, there is little difference in price between apartment rents and rent for the most part.
At the same time, there are also significant differences in the types of apartments available.
Some of the most expensive properties in Sydney have been identified by local developers as being in the luxury market, which is also in decline.
For example, there’s an area of the city called the Gold Coast and a separate area known as the Sunshine Coast that is also undergoing a real estate boom.
Aboriginal residential property is one of the fastest growing markets in the Australian economy, accounting for almost one in every three residential properties, according the ABS.
And in 2017, Sydney’s median income per person was $62,100, a record high for the city.
So how does it compare to the rest of Australia?
In Melbourne, for example, the median income for a household of three was $71,100.
There were 5,500 properties in the city with prices in excess of $500,000 last year but there were only 10.3 properties for a median rent of $1,400.
On the other hand, in Sydney, the average rent for a unit was $1.45 million, the second lowest of the metropolitan regions.
Rent in the capital has also fallen slightly since 2017.
According to the latest ABS figures, in the quarter ending March 2019, the rents for all apartments in the CBD were down by 0.5 per cent compared to the same three months last year and for apartments in surrounding suburbs they were down 2.2% to $2 million.
This is a major issue for many families who are struggling to get by.
One property in the Sydney CBD, for instance, was selling for $3.5 million in May.
While there’s still room for growth, the rate of growth is slowing.
Read more: Tenants of Sydney’s luxury apartments report living with fear of eviction