Rents in Sydney surge by up to $600 per week

• Rents in Sydney have surged by up to $600 per week due to the ongoing rental crisis across the country
• Clovelly has seen the largest increase in median house rent, surging by $633 to $1,995 per week
• Eleanor Creagh warns that the situation is unlikely to improve in the short term due to the impact of the pandemic on the rental market

The ongoing rental crisis across the country has resulted in most suburbs experiencing sharp spikes in median rental prices with some Sydney suburbs seeing rents jump by over $600 per week.

According to data from PropTrack, the Sydney suburb of Clovelly saw the largest increase in median house rent, surging by $633 to $1,995 per week.

While Rose Bay and Middle Cove also witnessed substantial increases, with median house rents rising by $600 and $525, respectively.

For the unit market, Caringbah South recorded the biggest increase, with median unit rents rising by $230 to $980 per week.

Eveleigh and Millers Point also saw significant increases, with median unit rents increasing by $208 and $180, respectively.

This situation is occurring across the country, leaving renters in a challenging situation as they try to secure a property at an affordable price.

Demand for rentals is high

PropTrack Senior Economist, Eleanor Creagh said rental demand, as measured by the number of potential renters per listing on realestate.com.au, has increased most in the inner and middle rings of Sydney and Melbourne.

“This is particularly the case when it comes to demand for unit rentals, indicating these markets remain highly competitive,” Creagh said.

“Comparing year-on-growth in the number of potential renters per listing, the most competitive regions for renters have seen demand more than double in the past 12 months.

“These competitive regions, like Canterbury, Merrylands – Guildford and Stonnington East are home to some suburbs where weekly rents have surged by close to 50% in the past year, equating to a more than $200 per week rise in rents.”

The sharp increase in rents is also hitting other cities as well according to Creagh.

The Gold Coast suburb of Surfers Paradise saw median house rents rise by $430 to $1,475 per week, while the Paradise Point suburb witnessed a $425 increase in median unit rent to $1,275 per week.

In Brisbane, the Greater Brisbane suburb of Banksia Beach recorded a $160 increase in median weekly rent for houses, while Clear Island Waters in the Gold Coast saw a $400 increase in median weekly rent for units.

Suburbs that have experienced the strongest dollar increase in rents for houses

Source: PropTrack.

Suburbs that have experienced the strongest dollar increase in rents for units

Source: PropTrack.

COVID fallout

Creagh said since the onset of the pandemic vacancy rates across the country have plunged by half, indicating just how tight conditions are in most markets.

“There are several factors that have contributed to what are now incredibly challenging conditions for renters,” she said.

“The shift to smaller household sizes with the accelerated adoption of remote work and changing lifestyle trends, reduced investor activity and more investor sales amid strong capital gains, and the ongoing boom in international arrivals have all played a part.

“Renters are faced with limited choice, fierce competition, properties being leased at record speed and higher overall rents.”

Creagh said that the situation is unlikely to improve in the short term.