Renting Market Boom in New South Wales

It’s excellent news for rental property investors in NSW, and not so good for those renting. Suburbs in Sydney particularly, have skyrocketed to over 25% rental value since February 2008.

“It’s not like people can simply turn to buying house’s and taking out mortgages. Just because rental property is increasing, permanent real estate is not the solution. It is still much too expensive for those renting in the first place.” Real Estate Commissioner Andrew Hardensen stated.

The following are some interesting statistics in Sydney’s radius of suburbs:

Average Weekly Rent for Sydney:

• The inner suburbs of Sydney reported in the majority of cases an increase of weekly rent to $440, an increase of 2.51%.
• The mid suburbs of Sydney saw an increase of weekly rent to $360, an increase of 2.91%
• The boundary suburbs of Sydney saw an increase of weekly rent to approximately $300, an increase of 3.40%

However, increases in rental property value isn’t any drastic news. Last year along, the total percentage increase over the 3 suburb sectors was a whopping 11.8%, or a $38 overall increase.

Interestingly enough, the most popular form of rental accommodation was single bedroom apartments. If the majority of these cases are single home livers, they may want to consider more room mates to accommodate to cover costs.

This catalyst of this recent trend is fairly obvious: There is an outright lack of rental property available in Australia, particularly around Sydney. The government needs to take initiatives to release new, cheaper government rental housing to suit those in financial strain and crisis from price increases.