Demand for quality rental accommodation across the capital cities of Australia remains high, despite the fact that rentals continue to escalate.
Low vacancy rates, improving employment, the end of the first home buyers’ grant and last year’s string of rate increases have contributing to the increase.
Data provided by RUN Property shows that Sydney recorded the most significant increases to residential rentals with the inner-city suburbs Glebe, Randwick, and Potts Point all experiencing rent rises of at least 11 per cent, compared with this time last year.
Average weekly rent across Sydney suburbs is $534..
The highest performing suburb in Australia was Sydney’s Neutral Bay, where rents for new tenancies jumped by more than 12 per cent, compared with this time last year.
“Many tenants are “staying put” because research continued to show that rent increases are greatest when tenants move out and the property is advertised for lease,” Run Property CEO Rob Farmer said.
In Melbourne, the best performing suburbs in terms of rental returns were Armadale, Glen Iris and Kew , where rents increased by at least 10 per cent, followed by Fitzroy, Essendon, Fairfield, Brunswick and Moonee Ponds, which recorded rent rises of 9 per cent or more.
In Brisbane, Nundah recorded the greatest rent increase of 5.9 per cent, followed by Clayfield, St Lucia and Logan Central, which all had increases of at least five per cent.