Sydney unit rents nearly as dear as houses
Unit prices have risen in Sydney to near-parity with detached house rents.
The Domain Rental Report shows the median unit rental price has risen in the June to $525, up from $520 in March. The rise puts unit prices only slightly below the median Sydney house rental price of $530 per week. Units have gathered pace on houses, with rental prices for units rising 5% over the past year while detached house rents have risen just 1%.
“Sydney is a chronically undersupplied market, certainly for rentals. Tenants are being squeezed,” Domain senior economist Andrew Wilson said.
Melbourne saw rents remain stable after hitting record levels in March. Median weekly rent for units was $380, while median rent for detached houses was $400. While vacancy rates are increasing due to new developments hitting the market, Wilson said the new supply had yet to impact prices.
“There is no real sign of a shift in rents yet. Melbourne is still in reasonable balance,” Wilson said.
Brisbane, meanwhile, saw a decline in median weekly rents. Unit rents fell to $375 from $380 in March, while houses fell from $410 to $400.
“The signs are all there for more supply than demand. That means downward pressure on rents in Brisbane,” Wilson said.
Recent CoreLogic analysis found capital city median rents fell during June, with declines in Perth and Darwin dragging the capital city average lower.