Rents in Sydney plummet by 4.9 percent in one year, while SQM Research blames new apartments

Rents in Australia's largest city have plummeted in combination with a record fall in house prices and the completion of new apartments.

Renters of a house in Sydney are now paying an average rent of $ 701.60 per week, a decrease of 4.9 percent compared to a year ago, according to new data from real estate analysis firm SQM Research.

Leasing an apartment also became cheaper, with weekly rental rates in the capital of New South Wales falling 3.1 percent to $ 507.50 from March 2019.

Only Darwin had a bigger fall, with houses rent plummeted by 12.3 percent to $ 490.90 a week as unit lease dived by 6.4 percent to $ 377.80.

The rents in the largest city of Australia have plummeted in combination with a record fall in house prices (stock image)

The rents in the largest city of Australia have plummeted in combination with a record fall in house prices (stock image)

Renters of a house in Sydney are now paying a median rent of $ 701.60 per week, a decrease of 4.9 percent compared to a year ago, new data from real estate analysis firm SQM Research showed

Renters of a house in Sydney are now paying a median rent of $ 701.60 per week, a decrease of 4.9 percent compared to a year ago, new data from real estate analysis firm SQM Research showed

Renters of a house in Sydney are now paying a median rent of $ 701.60 per week, a decrease of 4.9 percent compared to a year ago, new data from real estate analysis firm SQM Research showed

SQM Research founder Louis Christopher said that the completion of new apartment buildings in Sydney had lowered rents.

& # 39; The expected influx of new construction and the uncertainty surrounding the federal elections are likely to contribute to higher vacancy rates and downward pressure on rents, & he said.

Across Australia, the average rental price of a townhouse has dropped 1.2 percent to $ 556 a week in the last year, while Sydney has conquered the national market, although tenants have become more expensive in Melbourne, Brisbane, Perth, Adelaide, Hobart and Canberra. .

Melbourne, Australia's second most expensive place to buy property after Sydney, costs $ 543.60 per week for renters renting a home with a back yard.

Melbourne (photo), Australia's second most expensive place to buy property, costs $ 543.60 per week for renters renting a home with a back yard

Melbourne (photo), Australia's second most expensive place to buy property, costs $ 543.60 per week for renters renting a home with a back yard

Melbourne (photo), Australia's second most expensive place to buy property, costs $ 543.60 per week for renters renting a home with a back yard

Brisbane (photo) was the third most expensive city for renters, with a house lease of $ 456.80 per week

Brisbane (photo) was the third most expensive city for renters, with a house lease of $ 456.80 per week

Brisbane (photo) was the third most expensive city for renters, with a house lease of $ 456.80 per week

Canberra, however, was Australia's second most expensive capital to rent, with tenants paying a median rent of $ 635.60 to rent a home.

Adelaide is Australia's cheapest city with renting a unit costs $ 301 per week.

Houses in the South Australian capital cost $ 392.90 per week to lease.

Brisbane was the third most expensive city for renters, with a home lease of $ 456.80 per week.

Rental rankings

1. Sydney: $ 701.60 for a house; $ 507.50 for a unit

2. Canberra: $ 635.60 for a house; $ 456.60 for a unit

3. Melbourne: $ 543.60 for a home; $ 422.40 for a unit

4. Darwin: $ 490.90 for a house; $ 377.80 for a unit

5. Brisbane: $ 456.80 for a house; $ 371.40 for a unit

6. Perth: $ 445.90 for a house; $ 336.10 for a unit

7. Hobart: $ 428.70 for a house; $ 400.30 for a unit

8. Adelaide: $ 392.90 for a home; $ 301 for a unit

Source: SQM Research calculations of the average weekly rental prices for properties that are advertised online for three weeks or longer

Perth, Australia's sixth most expensive city to rent, costs $ 445.90 per week for a house.

Hobart, the capital with the largest increase in property values ​​in Australia, cost $ 428.70 a week to lease a home.

Units cost $ 400.30 per week, with an average rent increase of 12.3 percent over the past year, which means the sharpest increase in lease costs anywhere in Australia.

The decrease in the average rent in Sydney occurred when the average house price of the city plummeted by 11.8 percent in the year to March, based on CoreLogic data, as part of a record decline since 2017.

There are 70,877 rental vacancies throughout Australia, of which 31 percent in Sydney.

Sydney also had the sharpest rise in rental vacancies, with an increase in the number of vacant properties from 15,833 a year ago to 21,942 in March 2019, when the city's vacancy rate rose from 2.3 percent to 3.1 percent.

Only Darwin had a higher vacancy rate of 3.7 percent, followed by Perth (2.9 percent), Brisbane (2.5 percent), Melbourne (1.6 percent), Adelaide (1.1 percent), Canberra (0, 9 percent) and Hobart (0.4 percent).

The data were released when the Reserve Bank of Australia revealed in the minutes of its April meeting that it expected high immigration to reclaim house prices in the coming years.

"Members also noted that the medium-term population growth is expected to continue to support housing demand," he said.

Perth (photo), Australia's sixth most expensive city to rent, costs $ 445.0 a week for a house

Perth (photo), Australia's sixth most expensive city to rent, costs $ 445.0 a week for a house

Perth (photo), Australia's sixth most expensive city to rent, costs $ 445.0 a week for a house