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Rents soar to record highs on Sydney’s northern beaches and the Gold Coast, but plunge into North Shore

Beachfront rentals soar to record highs – but there are some surprising bargains around town, with renters in trendy suburbs paying 16% LESS

  • Rents on Sydney’s Lower North Shore have fallen 16 percent in just one year
  • The neighboring Northern Beaches saw rents rise to record highs in late 2020
  • The same happened on the Gold Coast, Sunshine Coast, NSW Central Coast
  • Canberra was still the most expensive capital market for a home or unit
  • Melbourne was the third cheapest for an apartment last year after Adelaide and Perth

Beachfront rents have hit record highs as the cost of living in wealthy, inner-city areas has fallen by 16 percent, new data shows.

New telecommuting arrangements have created great contrasts in the rental market, even in neighboring parts of Australia’s largest city, Sydney.

Weekly rents soared to record highs on Sydney’s northern beaches, even during the pre-Christmas lockdown, as competition between tenants also intensified on Queensland’s Gold and Sunshine coasts and New South Wales’ Central Coast.

The reluctance of professionals to go to city offices every day has had the opposite effect on Sydney’s Lower North Shore, an affluent area near the Harbor Bridge, with weekly unit rental prices dropping 16 percent in a year, the online sales site Domain has revealed. .

Weekly rents soared to record highs on Sydney's northern beaches, even during the Christmas lockdown. Pictured is a house in Palm Beach

Weekly rents soared to record highs on Sydney’s northern beaches, even during the Christmas lockdown. Pictured is a house in Palm Beach

Average rental prices for apartments in this area along a railroad track fell to a nine-year low of $ 500 in December 2020, down 5.7 percent from $ 530 in September.

Where the rental prices of apartments have fallen and increased

Sydney’s Lower North Shore: down 16 percent

Sydney City and Eastern Suburbs: down 15.4 percent

Sydney Inner West: Decreased 10.5 percent

Queensland Sunshine Coast: Up 7.5 percent

Source: domain data for December 2020

Across the harbor, unit rents in the city and eastern suburbs fell at an annual rate of 15.4 percent to an eight-year low of $ 550 as the border fence kept international students out.

Home rents fell 12 percent to $ 880.

Conversely, weekly apartment rentals in neighboring Northern Beaches were up five percent last year to a record high of $ 630.

Stretching from Manly to Palm Beach, this part of Sydney has weathered a city-wide trend of rents in Australia’s largest city falling at the fastest rate ever, with apartment leases back to 2013 levels.

Rents in this area rose at a modest annual rate of 2.1 percent to $ 990.

On the other side of Broken Bay, on the Central Coast, average home rents rose 7 percent to a record high of $ 460.

That’s still cheaper than Sydney’s average weekly unit rental of $ 470.

As a result, tenants who can work from home have increasingly moved an hour north of Sydney to rent a house with a backyard as an alternative to a cramped unit in the city.

The reluctance of professionals to go to a city office every day has had the opposite effect on Sydney's Lower North Shore, an affluent area near the Harbor Bridge, with weekly unit rental prices dropping by 16 percent in a year, the online sales site Domain has revealed. Pictured is a view from Milsons Point

The reluctance of professionals to go to city offices every day has had the opposite effect on Sydney's Lower North Shore, an affluent area near the Harbor Bridge, with weekly unit rental prices dropping 16 percent in a year, the online sales site Domain has revealed. Pictured is a view from Milsons Point

The reluctance of professionals to go to city offices every day has had the opposite effect on Sydney’s Lower North Shore, an affluent area near the Harbor Bridge, with weekly unit rental prices dropping 16 percent in a year, the online sales site Domain has revealed. . Pictured is a view from Milsons Point

Dr. Nicola Powell, the domain’s senior research analyst, said a similar phenomenon had pushed home and unit rents to record highs on the Gold Coast and Sunshine Coast.

“Clearly, lifestyle locations are experiencing increasing demand from local travelers and home workers are choosing to move,” she said.

Gold Coast home rents rose 3.8 percent annually to $ 540, while rents for equivalent properties on the Sunshine Coast rose six percent to $ 530.

The number of units in this beach area north of Brisbane, which stretches from Caloundra to Maroochydore and Noosa, is up 7.5 percent in a year to $ 430.

Dr. Nicola Powell, the domain's senior research analyst, said the ability for more people to work from home pushed home and unit rents to record highs on the Gold Coast. Pictured is the view from a canal house in Surfers Paradise

Dr. Nicola Powell, the domain's senior research analyst, said the ability for more people to work from home pushed home and unit rents to record highs on the Gold Coast. Pictured is the view from a canal house in Surfers Paradise

Dr. Nicola Powell, the domain’s senior research analyst, said the ability for more people to work from home pushed home and unit rents to record highs on the Gold Coast. Pictured is the view from a canal house in Surfers Paradise

When it came to apartment affordability across Australia, Melbourne was the third most affordable capital to rent a unit in 2020 for the first time in five years, with an average asking price of $ 388, compared to $ 350 in Perth and $ 340 in Adelaide.

In the capitals, house and unit rental prices hit record highs in Canberra, Adelaide and Brisbane last year.

Canberra’s average home rental of $ 600 was the most expensive in Australia, as was the average weekly unit cost of $ 495, proving that not all desirable rental areas are near the beach.

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