New figures from the New South Wales government have revealed a spike in rental prices in the state’s capital.
The median asking rent for a three bedroom home in Sydney rose 10 per cent in 2010 to be $440 per week, the figures revealed, more than double the increase recorded in 2009.
Surprisingly, the price of renting increased most in the western suburbs of Sydney, with the outer ring median rent price spiking by 8.6 per cent.
Investors within the inner ring of the city can earn a median of as much as $750 a week for a three bedroom property, the figures revealed – reflecting an annual increase of seven per cent.
Aaron Gadiel, CEO of Urban Taskforce, said lack of new housing was clearly placing strong upward pressure on rental prices.
“Residential lot production is presently running at less than half the level required by the NSW government’s own Metropolitan Strategy.”
Moreover, Mr Gadiel said that no Australian capital city approves less new homes per head of population than Sydney.
“The city’s per capita housing supply has halved since 2003,” he said.