Report shows rents at $520 per week
Sydney is seeing a surge in apartment rents.
According to a Domain article, the median weekly advertised rent is now at $520 per week for an apartment in the harbour city. This is only around $5 cheaper compared to houses as per the data provided by the Domain Group’s Rental Market Report.
Nonetheless, experts think there should be a turnaround in this trend especially with the number of apartment developments expected to be completed in the coming years that are mainly owned by investors who rely on tenants and rental income.
For the last year, the rent in Sydney units rose to 5% which comes in as the second-fastest city in the country for growth behind Hobart. Rents for houses in the same period increased by only 1%. The report also added that Sydney apartments now count as the most expensive across the country. Darwin comes in at second with $440 per week.
“Rents have increased for the past two quarters, but there are pockets where supply is certainly catching up with demand,” said Domain Group chief economist Andrew Wilson.
For those looking for capital growth, they would do well on the harbour city given that experts expect there will be sustained interest from tenants.
Generally, an apartment is still cheaper to rent than a house and at the same time there is a trend towards apartment living for lifestyle and maintenance purposes.
Is it time to get out of the rental market?
With rents on the increase, renters should consider if buying an apartment is an option. This comes down to assessing the following:
- Do you have enough of a deposit?
- How much is the monthly mortgage repayment compared to “dead” rent money?
- Can you get the finance approved? Speak to a mortgage broker to get help on this.
- Are you secure in your job or business to take on the financial commitment?