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Renters in Sydney will be pleased to hear that rental prices have rolled back, matching 2015 levels.
Domain’s rental report for the December 2019 quarter found the median unit rent in the Harbour City was down by $40 from its peak.
The fall in rent has been driven by the growth in the supply of new apartments, which pushed house rents back to 2016 levels and units back to 2015, Domain economist Trent Wiltshire told Real Estate Business.
“House rents are $25 below the peak of $550 in 2017 and 2018, and unit rents are $40 below the same peak,” he said.
In the last quarter, house prices remained steady, but the report revealed rents were down by 2.8 per cent from the previous year.
However, some areas of the city did see the median weekly asking rent take a hit. Rents for houses in the Central Coast fell by 2.3 per cent from the previous quarter, and the Northern Beaches were down by 1.5 per cent.
However, Northern Beaches was the only area in Sydney where rents are up from the year before, with an increase of 1.1 per cent in weekly asking house rents.
Although city and east suburbs made a slight recovery last quarter, rents are down by 8.7 per cent over the last year, down to $1,000 a week.
Although renters will be pleased with the news, investors will be pleased to hear that Mr Wiltshire believes the market has hit its price bottom.
“New supply helped push down rents, but that is going to start to dry up later this year and into next year,” he said.
“We will probably see rents start to stabilise this year, and maybe some modest growth.”
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