Rental prices on Sydney units have fallen by almost 5.0 per cent over the year on an influx of new supply but remain “significantly” higher than anywhere else in Australia.
Rental prices for Sydney houses and units fell during the June quarter and are down year-on-year, real estate advertiser Domain says, with house rents down by 3.6 per cent to $530 a week – $20 below the peak of $550 in 2017 and 2018.
Rent for units in Sydney fell by 0.9 per cent in the quarter and 4.5 per cent over the year from $550 to $525 but Domain’s quarterly rental report says the city remains the the most expensive capital city to rent a unit “by a significant margin”.
Units in Melbourne are the next most expensive to rent at a median of $420 a week.
Sydney rents held up the best on the Central Coast and on Sydney’s north shore but fell in other areas of Sydney, the report released on Thursday says.
“Ongoing strong construction of new housing has weighed on rents and also contributed to the vacancy rate increasing to 3.2 per cent in June, up from 2.4 per cent one year ago,” Domain says.
Canberra retains the title as the most expensive city to rent a house at a median of $550 a week.
House rents in the nation’s capital fell 3.5 per cent in the June quarter but were unchanged over the year, while unit rents increased by 4.4 per cent to sit at $470.
Unit rents have grown 18 per cent during the past three years, which has occurred despite Canberra’s ongoing apartment construction boom.
Melbourne house rents fell 2.0 per cent in the June quarter but remained unchanged over the year at $430 a week, while unit rents increased by 2.4 per cent over the year.