Surging rent on the outskirts of Sydney (according to Domain)
The housing crisis in Sydney has continued, prompting a high price for rent in the outskirts of the city. Tenants carefully calculated to transfer to Apartment Inner City rental market.
Rents for separate homes in parts of Sydney have remained unchanged over the past year, according to Domain, but rents for separate homes on the central coast of Blue Mountain (Blue Mountains), and in far-flung suburbs such as West Sydney rose sharply last quarter.
(Domain March 2018 Rental report > (Domain Rental Report March 2018) showed that Blue Hill tenants were the most under pressure, with rents rising 4.7 percent in the first quarter of 2018, or A $20 a week. Rent on the central coast was the highest annual growth rate since 2011, to 5.9%. At the same time, Sydney Urban, East, Southern and Upper North Bank stand-alone housing rents remained unchanged throughout the year.
Industry experts believe that Sydney`s rising housing prices spread to the outskirts of the region, squeezed out of the inner city market residents began to compete for the final position of affordable real estate. At present, the monthly rental of Sydney apartments is equal to the monthly repayment of the purchase of a separate house, which has also contributed to an increase in demand for more valuable independent housing in the suburbs.
Ziegmanis (Angie Zigomanis), senior residential manager at the Oxford Institute for Economics at BIS, said demand for relatively cheap urban areas would generally change when residents were squeezed out of other parts of the country by high prices.
Rent for independent homes in West Sydney rose 4.4 percent in the first quarter of 2018, while apartment rents rose 2.3 percent, while apartment prices fell 1.5 percent.
Although there has been little increase in rents for independent homes in the urban and eastern districts of Sydney, the average regional rental price is still at the highest level in Sydney, at A $1100 a week. Rent growth on Sydney`s North Coast and North Beach was strong, with annual growth rates of 10.0 percent and 5.3 percent, respectively. Ziegmanis believes this is linked to a shortage of housing in both regions.
Simon Presley, head of Propertyology, a property market research firm, is of the view that, taking into account the number of record-breaking homes, Sydney`s rent pressure is likely to be mitigated over the next few years.
