Sydney hefty house rents push tenants into units: APM

April 30th, 2013

Hefty house rents in Sydney have been driving tenants towards cheaper rental units but this may lead to unit rents rising to the same level, according to Australian Property Monitors (APM).

House rents remained unchanged at $500 per week over the March quarter, but unit rents increased 2.2% to $470 per week, according to APM’s March quarterly rental price series report.

Andrew Wilson, APM’s senior economist, says that high median house rents of $500 per week are pushing Sydney tenants into units.

The gap now stands at $30 a week. In the March 2012 the gap was $50.

“With first home buyer numbers currently at record lows, demand is increasing for already scarce rental accommodation, particularly at the more affordable end of the price spectrum,” Wilson says.

“The differential between house rents and unit rents however is quickly closing with the real prospect looming of rental parity between these accommodation types.”

House rents in Sydney remained the same since the March 2012 quarter but unit rents increased $30 a week during the same period.

Source: http://www.propertyobserver.com.au/new-south-wales/sydney-house-rents-push-tenants-into-units-apm/2013041160301?utm_source=po&utm_medium=aida&utm_campaign=latestnews