Rents on flats in main city centres are nearing the worth of leasing a whole home, as migrants add to demand for inner-city residing.
Across all capital cities, asking rents for models surged 5.5 per cent within the June quarter, in comparison with a 2.7 per cent rise in median weekly marketed rents for homes.
The June quarter report from property agency Domain confirmed asking rents in Sydney hitting $700 per week, a bit of above $670 for flats.
Domain chief of analysis and economics Nicola Powell mentioned the worth hole between homes and models was additionally closing in Brisbane and Perth.
“This narrowing in the price gap is a reflection of the heat in the rental market right now – with affordability constraints driving greater demand to units, and overseas migration bolstering demand in inner-city locations often dominated by units,” Dr Powell mentioned.
A separate report from CoreLogic backed up this discovering, with the agency’s information suggesting the hole between home and unit rents was $34 per week.
Both the Domain and CoreLogic experiences revealed a rental market nonetheless firmly favouring landlords.
But emptiness charges ticked up from report lows, suggesting competitors for leases was dropping a few of its chunk.
Dr Powell mentioned a number of elements could possibly be driving up emptiness charges, together with extra flat-sharing and bigger households, in addition to extra tenants choosing extra reasonably priced areas or property varieties.
But she mentioned the “rental pressure cooker” had not gone away, with robust inhabitants development colliding with a slowdown in dwelling constructing.
More renters are additionally discovering themselves caught within the rental market longer as shopping for a house stays unaffordable.
“With a number of factors at play, there needs to be a seismic shift in supply to address the challenges being faced,” she mentioned.
Source: www.perthnow.com.au
