Australian Property News

Rent growth intensifies in NSW

Posted on Tuesday, November 29 2011 at 4:26 PM

Median rents have significantly risen in inner Sydney and the Hunter region for the September quarter, according to the latest PRDnationwide New South Wales Rental Market Overview.

The Leichardt local government area (LGA) in Sydney’s inner west experienced the greatest 12-month median rent price surge for a two-bedroom unit (20.5 per cent), and the second largest year-on-year median rent increase for a three-bedroom house (12.7 per cent growth).

In Sydney’s east, the Randwick LGA recorded the largest median rent increase for a three-bedroom house, up 14.3 per cent from September 2010.
The highest median rents in New South Wales were found in the Waverley LGA at $980 per week for a three-bedroom house, up 8.9 per cent in 12 months to September, while Sydney’s highest recorded bond lodgement growth was 18.4 per cent in the Botany Bay LGA.

Just behind the Botany Bay LGA in bond lodgement growth over the past 12 months was the Fairfield LGA (over 12 per cent growth).

Across the greater metropolitan Sydney region in the 12 months to September overall rents for two-bedroom units climbed 6.4 per cent, and by 5.8 per cent for three-bedroom houses.

Moving outside of the Sydney greater metropolitan region, the Hunter Valley’s Maitland LGA experienced the highest NSW increase in new bonds, up a startling 29.7 per cent in the 12 months to September.

“While growth around the Hunter is generally related to the intensification of mining activities, the Botany Bay LGA recorded strong growth in new unit bonds, likely as a result of large unit complexes in the suburb of Mascot,” said report author Oded Reuveni Etzioni.

Meanwhile on the NSW south coast, Kiama experienced a 23.7 per cent median rent price growth in the 12 months to September.

Overall in the NSW regional and rural areas, rental price gain was related to mining activity, said Reuveni Etzioni.

“In the Gunnedah LGA, the coal mining industry has attracted workers from urban areas, interstate and across the Tasman, which resulted in a sharp increase in demand for rental properties,” he said.

“This trend has been extended to the Tamworth Regional LGA, with several employees who work in Gunnedah basing their families in Tamworth, which offer a higher level of amenities.”

The Queanbeyan LGA recorded the highest rural median rent price for the September quarter, with a median rent of $460 per week for a three-bedroom house and $300 per week for a two-bedroom unit, said Reuveni Etzioni.