This article is from the Australian Property Journal archive
SYDNEY rents are continuing to increase beyond inflation, according to the latest Housing NSW figures.
Across the inner ring of Sydney’s suburbs the annual increase for one bedroom apartments was 7.1%, for two bedroom apartments 5.5% and for three bed units the increase was 9.0%
The middle ring recorded increases of 8.6% for one bed units, 5.0% for two beds and 6.2% for three beds.
The Urban Taskforce CEO Chris Johnson said some suburbs across Sydney have had very high rent increases, much higher than the CPI, for example Botany Bay recorded an increase of 22.6% for one bed apartments, 12.5% for two bed and 15.6% rise for three bed units.
“Even North Sydney and the City of Sydney have had significant rises, with North Sydney’s one bed units going up 8.4% and the City of Sydney having two bed units rise in rent by 6.6% and three bed units by 9.0%.
“The outer ring of suburbs had a less significant rise but still averaged a 4% rise for one bed units, a 6.1% rise for two bed units and a 5.6% rise for three bed units,” he added.
Johnson said the figures show that the poor supply of new houses and apartments in Sydney is having a major effect on rental costs.
“It is essential that the NSW Government understands that there is a growing crisis in housing supply that is driving more people into the rental market and so driving rents up. We need to unlock the blockages to housing supply by lowering levies and by simplifying the planning system.
“Most rental is in apartments and the supply of this building type is constrained by NIMBY communities against change. To accommodate the 770,000 new housing units required by 2036 as outlined in the Metropolitan Strategy, we will need a lot more apartment buildings built in infill areas close to transport nodes,” he concluded.
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