Rents have surged by double-digit figures in 44 per cent of Australian suburbs because of soaring immigration – with inner-city apartment tenants the worst affected.
In the year to May, house and unit rents went up by at least 10 per cent in 1,700 of the 3,812 markets CoreLogic analysed.
But in pockets of Sydney, rents have climbed by more than 30 per cent, as an influx of international students drove up prices in Australia’s most expensive rental market.
Sydney’s inner-city market has seen the biggest surge in rents with Treasury expecting a record 400,000 migrants to move to Australia by the end of this financial year, followed by 315,000 in 2023-24.
The city was home to nine of Australia’s top 10 suburbs for rental increases, with Melbourne having one entry.
Sydney was a city of extremes with rents soaring near the city but falling in scenic areas by the water, including on the Central Coast an hour’s drive north.
But in pockets of Sydney, rents have climbed by more than 30 per cent, as an influx of international students drove up prices in Australia’s most expensive rental market. Haymarket, next to Chinatown, saw its median rent surge by 34.5 per cent to $1,115 a week (pictured is George Street)
Rental increases of more than 20 per cent were recorded in parts of Brisbane, with double-digit increases also occurring in Perth and Adelaide.
CoreLogic economist Kaytlin Ezzy said tenants living in units were facing the biggest cost increases, with Sydney having a vacancy rate of just 1.3 per cent while in Melbourne and Brisbane, it’s even tighter at 0.8 per cent.
‘When you break that figure down further by property type, we can see the unit sector is under the greatest pressure, with rents increasing at a faster rate than houses due to their relative affordability,’ she said.
Haymarket, next to Chinatown, saw its median rent surge by 34.5 to $1,115 a week.
Wolli Creek rents went up by 31.5 per cent to $822 as Zetland rents rose by 30.5 per cent to $988.
The heart of Sydney saw its rent increase by 29.2 per cent to $1,042.
Melbourne’s central business district had a 28.4 per cent increase, taking rents to $664, putting it in fifth place nationally.
Melbourne’s central business district had a 28.4 per cent increase, taking rents to $664, putting it in fifth place nationally (pictured is Flinders Street Station lit up for the Coronation of King Charles III last month)
Brisbane’s city centre saw its rent go up by 24.2 per cent to $723 as tenants at nearby Kangaroo Point, across the river, paid 21.9 per cent more, taking leasing costs to $690
But Sydney continued to dominate the top 10 list, with Chippendale rents rising by 28.3 per cent to $864.
At Mascot, next to Sydney’s Kingsford Smith Airport, rents went up by 28.1 per cent to $988.
Waterloo rents rose 27.8 per cent to $956.
Rosebery saw a 27.7 per cent increase to $984 as Arncliffe rounded out the top 10 with a 27.3 per cent increase taking weekly rents to $817.
Brisbane’s city centre saw its rent go up by 24.2 per cent to $723 as tenants at nearby Kangaroo Point, across the river, paid 21.9 per cent more, taking leasing costs to $690.
In Perth, Alexander Heights rents climbed by 18.3 per cent to $608 while in Adelaide, Albert Park rents rose by 17.6 per cent to $555.
The other capital cities were spared double-digit increases.
In Darwin, Nakara rents rose by 9.7 per cent to $689.
Hobart rents were more subdued by comparison, with Oakdowns tenants paying 5.5 per cent more, taking costs to $572.
Canberra had the smallest increases, with rents at Barton near Parliament House rising by just 2.8 per cent to $620.
Sydney, the city with the biggest rent increases, was also the city with the biggest rent falls. Rents at Bundeena, a ferry ride across Port Hacking from Cronulla in the Sutherland Shire, fell by 6.8 per cent to $823 a week
Across Australia, rents declined in 6.7 per cent of suburbs.
The New South Wales Central Coast, an hour’s drive north of Sydney, was home to eight of the top 10 markets with the steepest rent falls, with tenants at Green Point paying 4.5 per cent less over the year or $753 a week.
‘Sydney had 38 markets where rents declined, with the majority located on the Central Coast,’ the CoreLogic report said.
Sydney, the city with the biggest rent increases, was also the city with the biggest rent falls.
Rents at Bundeena, a ferry ride across Port Hacking from Cronulla in the Sutherland Shire, fell by 6.8 per cent to $823 a week.
Another suburb on the water was also cheaper for tenants with Roseville Chase tenants near Middle Harbour paying 3.1 per cent less for a weekly rent of $1,397.
Nationally, rents fell in 225 house and 29 unit markets, with the majority of them in Canberra and regional areas.
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