Sydney lags as rents continue to recover from pandemic
The Sydney rental market is continuing to lag behind the rest of the country, official figures have revealed. ...
The rental markets of each state are moving at different speeds, with five cities recording a rise in house rents and two a loss over the past quarter, according to RP Data.
Brisbane was the only city where the house rent remained unchanged in the three months to September, sitting on a median rent of $400 per week.
Melbourne recorded the greatest change, with rents shooting up by 2.6 per cent for a median of $525 per week.
Darwin remains the country’s most expensive rental market, with a median house rent of $660 per week.
and Canberra suffered a drop in median rents.
Perth fell by 2.7 per cent to a median of $462 per week while Canberra dropped by two per cent.
Unit rents flatlined in most cities over the quarter in six cities.
Canberra experienced a 3.2 per cent drop while Hobart saw a more moderate fall of 1.8 per cent.
RP Data research director Tim Lawless said the one consistent trend was capital gains outpacing rental returns.
“The performance of rental markets are diverse, however the common theme is that generally the rate of capital gain is outpacing the change in weekly rents which is driving rental yields lower,” he said.
“This is happening at a time when investment demand is at record levels and trending higher, which highlights that most investors are focusing on capital gains and ignoring the low yield scenario.
“The softer rental conditions are likely the result of the surge in investor-related activity which is seeing more rental supply hit the market.”