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Rents in Sydney and Melbourne spike

Rents in Sydney and Melbourne spike

by Staff Reporter 0 comments

Unit rents are growing at a faster rate than rents for houses in most capital cities, according to a new report. 

The latest Australian Property Monitors’ Rental Price Series Quarterly Report spells bad news for tenants in Sydney and Melbourne, with rent prices on the rise.

Despite no movement over the June quarter, Melbourne saw the biggest jump in house rental prices for the 12 months to 30 June 2014, with an increase of 5.6 per cent.

There were also increases for Brisbane with 2.6 per cent, Sydney with 2.0 per cent and Adelaide with 1.5 per cent, while Hobart remained flat.

House rents fell by 6.6 per cent in Perth, 6.3 per cent in Canberra and 5.8 per cent in Darwin.

Meanwhile, Darwin experienced the biggest jump in unit rental prices, recording an annual increase of 5.8 per cent.

Sydney unit prices grew by 5.3 per cent, Hobart by 4.0 per cent, Melbourne by 2.8 per cent, Adelaide by 1.8 per cent and Brisbane by 1.4 per cent.

There were also rent decreases of 6.1 per cent for Canberra and 5.9 per cent for Perth, according to Australian Property Monitors.

Rental growth for units has been outperforming houses in most capitals, which senior economist Andrew Wilson said was due to “affordability barriers and lifestyle choices”.

Dr Wilson also pointed out that while there has been some rental growth, rental yields for houses have fallen in most capital cities, mirroring the impact of price growth.

Rents in Sydney and Melbourne spike
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