REVEALED: The Australian cities where rent has FALLEN during the last year – as landlords are forced to slash prices to cope with an oversupply of homes
- Sydney’s median weekly rent has dived by 3.1 per cent during the year to March
- Australia’s biggest city has dragged down the national annual change in rents
- CoreLogic said increased supply of new apartments weighed down weekly rent
- Melbourne rents increased by 2.1 per cent as Darwin plummeted by 5.7 per cent
Tenants are getting cheaper rent in Australia’s biggest city as house prices fall and a glut of new apartments are built.
Sydney’s median weekly has fallen by 3.1 per cent during the past year, real estate data group CoreLogic has revealed.
Despite the falls, it was still Australia’s most expensive city with weekly rent of $582, making it a much more expensive place to live than Melbourne, where it costs $454.
Tenants are getting cheaper rent in Australia’s biggest city. Sydney’s (Milsons Point pictured) median weekly has fallen by 3.1 per cent during the past year, real estate data group CoreLogic has revealed
CoreLogic blamed a sharp increase in apartment construction in Sydney for the drop in rents.
‘Sydney and Melbourne are seeing the impact of such significant demand from investors over recent years along with a substantial ramp-up in new housing (largely apartment) supply, much of which was purchased by investors,’ it said.
Melbourne rents, however, rose by 2.1 per cent in the year to the end of March, or by more than the rate of inflation, despite the increased supply of new apartments.
During the past year, Melbourne’s median house and unit prices have fallen by 9.8 per cent as Sydney’s equivalent values fell by 10.9 per cent.
Melbourne (Federation Square pictured) rents, however, rose by 2.1 per cent in the year to the end of March, despite the increased supply in new apartments
Across the capital cities, rents fell by an average annual pace of 0.1 per cent, as Sydney dragged down the national market.
CoreLogic said this was the lowest yearly change on record since the data series began in 2005.
Darwin was Australia’s worst performing city, with rents plummeting by 5.7 per cent during the past year.
‘Darwin rents have been falling for many years and they continue to decline,’ CoreLogic said.
Hobart, Australia’s best performing housing market, was also the city with the highest rental increases, with tenants paying 5.4 per cent more a week.
With a median weekly rent of $453, Hobart is only $1 cheaper than Melbourne and is more expensive than other state capitals Brisbane ($436), Adelaide ($386) and Perth ($385).
‘Historically Hobart has been the most affordable capital city rental market however, strong rises in rents over recent years have pushed rental costs well above those in Brisbane, Adelaide and Perth and now similar to those in Melbourne,’ CoreLogic said.
Canberra also recorded a big increase in rents, with the median weekly charge of $550 marking a 3.6 per cent increase compared with a year earlier, making the national capital Australia’s second most expensive market after Sydney.
Hobart (pictured), Australia’s best performing housing market, was also the city with the highest rental increases, with tenants paying 5.4 per cent more a week
Darwin (Stuart Park pictured) was Australia’s worst performing city, with rents plummeting by 5.7 per cent during the past year