Demand meets supply in apartment rentals
The latest market analysis from the Domain Group suggests the surge in apartment construction in ...
The latest market analysis from the Domain Group suggests the surge in apartment construction in Sydney has done little to stifle rental growth.
Indeed, median weekly rents for units ($520) in the NSW capital are almost on par for houses ($530). Year on year, median rents actually grew 4%.
The growth in median rents is patchy, however, with some pockets of Sydney watching rents fall backward – particularly in areas outside the suburbs which have enjoyed recent regeneration.
It’s a similar story in Melbourne, where rents rose 2.7% over the March quarter to a median of $380 per week. The Melbourne market has likewise welcomed significant new apartment numbers. Despite the increased stock, the vacancy rate for apartments actually contracted from 2.6% to 2.4%. Melbourne’s house market remained steady at $400 per week.
Elsewhere, the surge in apartment activity in Brisbane is yet to be fully felt, with rents also increasing in the Queensland capital. A host of apartment projects are being constructed and proposed for Brisbane’s inner city market, as developers offer up affordable opportunities.
Median weekly rents for houses increased in Adelaide year on year while Perth’s market remained challenged.
Rents for houses in Hobart performed well, increasing six per cent over the year.