Outer suburbs seeing greater rent hikes than CBD
The outer suburbs of Sydney are seeing a higher increase in rent than inner city suburbs, according to PRDnationwide.
Local Government Areas (LGAs) in the middle and outer rings of the Sydney Metropolitan Area recorded higher increases in median rent than their inner city counterparts over the past 12 months, research from the company has shown.
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PRDnationwide research analyst, Oded Reuveni-Etzioni, said Housing NSW's September rental data for new bonds in the Greater Metropolitan Area (GMR) were examined across three dwelling types: one-bedroom units, two-bedroom units and three-bedroom houses.
“Rent prices have become unaffordable for some inner city tenants, forcing them into outer ring LGAs and the Central Coast, and therefore increasing demand," he said.
"This trend was observed across all dwelling types but was most pronounced in the median rents paid for one-bedroom units."
One-bedroom units, according to Mr Reuveni-Etzioni, recorded strong median rent growth in the Rockdale, Gosford and Fairfield LGAs over the past 12 months, and areas that exceeded the common range for new one-bedroom apartments included the Ku-Ring-Gai and Botany Bay councils.
Mr Reuveni-Etzioni said the median rent prices for one-bedroom units recorded long-term growth between four and ten per cent. He said at the bottom of the scale were the council areas of Canada Bay, Mosman and Auburn, while Fairfield and Burwood were at the top of this range.
However, Belinda Crowe of Colliers International Residential said it was hard to draw a comparison between suburban and inner city leasing, due to the dynamics of each area's residents.
"They're not comparable because in the CBD people pay for the lifestyle, the access to transport, business and shopping. It's a different demographic."
