“The population growth is not as strong as in Melbourne and the apartment boom was greater for a longer period, so the balance between demand and supply is one of the key reasons why rents from Sydney is falling and Melbourne’s rents have remained a little better. “
House rentals in Sydney remained stable during the quarter and fell 2.8 percent during the year.
Melbourne apartment and house rentals were flat during the quarter, but unit rentals increased 2.4 percent during the year.
Rent increase in Sydney in 2021
Since the construction pipeline was “finishing fast” (the latest ABS figures on Wednesday show a 36 percent year-on-year drop in the number of new homes being built in New South Wales during the September quarter), Wiltshire said he expected Sydney to rent to remain stable before resuming next year.
Elsewhere, apartment rents increased during the quarter, 2.6% in Darwin, 3.8% in Hobart, 1.3% in Brisbane and 1.6% in Adelaide. There are green shoots in the capital of WA: the rents requested in Perth now cost $ 20 more for houses than during the market in 2017.
In Canberra, despite its own construction frenzy, rents have increased in the last three years by 16 percent for homes and 14 percent for units.
Wiltshire said: “Yes, a construction boom is happening, but obviously population growth is reaching or exceeding that, averaging about 2 percent every year for the past three years.”
The rental market of Hobart is under considerable pressure, creating difficult conditions for tenants. House rents increased 31 percent, now $ 30 more than in Melbourne, and unit rents increased 37 percent in the last three years.
“The building’s pipeline has been recovered, but construction has taken some time to catch up and there have been bottlenecks in the supply. Building approvals have increased, which should mean that rental growth begins to moderate “said Wiltshire.
However, Hobart’s vacancy of 0.6% is the lowest of the capital cities.