As if you need a report to tell you that Sydney rents are out-of-control high – but there is one. Domain's most recent rent report (released this morning; Thursday, April 11) shows a rapid reacceleration in rent across the Emerald City; with rents in Sydney at a record high. In fact, rents are high across the whole country – Australia’s entire rental market has skyrocketed over the first quarter of 2024, leading to record-high asking rents across all capital cities apart from Canberra. The only good part in this news is that a tipping point is “likely” to be reached later in the year, according to Domain. What does that mean for renters? Rents shouldn't keep rising at such ridiculous rates.
Rental prices in Sydney have reached a new record high, with the median rental asking price for a house now sitting at $750 per week (a 13.6 per cent increase from the same time last year). Similarly, the rental price for units in Sydney has also reached a record high, with a new median rental asking price of $700 per week. The rise in rental rates across Australia show the steepest quarterly gain in 17 years – the second-steepest surge on record. Plus, vacancy rates across Sydney are at an all-time low.
According to Domain’s Chief of Research and Economics, Dr Nicola Powell, it’s not all doom and gloom. She explains that the first quarter of the year generally calls in a surge in rental rates; a “seasonal trend” intensified this year by “a surge in tenant demand against a limited supply”.
“Some sub-markets will operate with more balance and rent growth will slow – some areas already show these signs," she says. "Currently, we're seeing the number of prospective tenants per rental listing ease, suggesting some pressure has been lifted. This could be an early indicator of an increase in vacancy rates sometime this year.”
Dr Powell also cites the slight decrease in international student arrivals and government home ownership incentives as reasons that may halt the rapidly rising rental rates.
Here’s hoping – in the meantime, we’re keeping the fun high and the costs down with Sydney’s best cheap eats and sparkling happy hours.
For more insights into the Sydney rental market, you can read the full report from Domain over here.
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