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Rents have soared by 30 per cent in one Sydney suburb and by double digits in a string of others, as the cost to rent a typical property in the harbour city reaches record highs.
Across Sydney, median asking rents for houses rose by 1.3 per cent over the year to September to reach a record $780 a week, the latest Domain Rent Report shows, but some prestige suburbs surged over the year.
In leafy North Turramurra, house rents rose 30.4 per cent to $1500 a week in the year to September, while the eastern suburbs’ Double Bay jumped 28 per cent to $2750 and Clovelly went up 21.2 per cent to $2000.
“Generally, the family suburbs with good schools and other amenities have shown a lot of rental growth,” Domain chief of research and economics Dr Nicola Powell said.
Typical unit rents were up 1.4 per cent over the September quarter to hit a fresh record high of $750 a week, and added 4.9 per over the year, with some more affordable suburbs leading the charge.
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In Katoomba, apartment rents jumped by 16.1 per cent to $450 a week over the year to September, while Telopea rents rose 15.4 per cent to $600. Central Coast suburbs – counted as Greater Sydney – Woy Woy and Point Frederick, saw rents rise by 14.3 per cent and 12.3 per cent respectively, to $480 and $595 a week.
Apartment rents have been top of mind for paramedic Tom Murray, 31, who works in Bankstown, but lives in a three-bedroom unit in the eastern suburb of Bellevue Hill.
He shares with his younger brother Jack and friend Nathan, both 26-year-old carpenters. They pay $1400 a week between them because they love the lifestyle the suburb offers, enjoying regular runs and beach visits.
“The weekly expense has been a tough pill to swallow, as it’s a big chunk out of your wages each week, and it’s definitely frustrating as I’d love to buy a place with my brother, and it makes it hard to save,” he said.
“ Buying isn’t an option around here, either. We’ll go to Greater Sydney or to rural NSW.”
Tom Murray at his rental home in Bellevue Hill which he splits with his brother and friend for $1400 a week.Credit: Flavio Brancaleone
Gareth Croy, managing director of financial advisory firm Your Future Strategy, said the percentage of income that was being used for housing was growing.
“That increased percentage of their income going to rent just means that there’s less at the bottom line to save,” he said.
Tenants Union of NSW chief executive Leo Patterson Ross said if you look at the median Sydney house or unit rent as an annual expense, rather than weekly, you can clearly see how it could be the equivalent of a deposit.
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“But rents are so high now, people are only just managing from pay cheque to pay cheque,” he said.
“It’s forcing many people out to more and more far-flung areas and having to pay transport costs to get to work, or making them share, move back in with parents, move to smaller properties, sometimes even to converted garages in suburban areas or, in extreme situations, to converted balconies in the city.
“The pressure is building all the time, and people are really struggling. It’s like a runaway train.”
Domain’s data shows the rent for a typical house and unit over 52 weeks is $40,560 and $39,000 respectively.
Agent Shannon Cleary of Ray White Touma Taylor in the eastern suburbs said Double Bay was in the eye of a perfect rental storm, being an in-demand premium blue-chip suburb with a council cap on building heights.
“It’s a suburb with great access to the city and the train at Edgecliff and Bondi Junction with a lot of boutique character and the cosmopolitan energy of a European village,” he said.
“There have been some new upmarket apartments in Double Bay, which push up median rents, and attract lots of executives, downsizers and expats who are willing to pay a premium to live there.”
Both house and unit rents have risen in ritzy Double Bay. Unit rents rose by 12.2 per cent over last year to a median of $1100, which is just under half the growth rate of house rents.
Other big rent jumps were seen for houses in family-friendly suburb Gosford (up 20.8 per cent) and Crows Nest (up 18.2 per cent). Unit rents in Fairfield Heights rose by 12 per cent, St Ives and Fairlight both by 11.8 per cent.
Typical unit rents were up 1.4 per cent over the September quarter to hit a fresh record high.Credit: Dominic Lorrimer
Powell said that, while some of the “vicious” rent rises seemed to be over, rents were settling at high levels.
“It’s a really mixed bag, but this is the first steady September quarter we’ve seen in six years,” she said about house rents.
“But Sydney rents are still high and are hitting the affordability ceiling after so many years of rises.”
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