Renters face prospect of paying more

Reported by AAP
Thursday, April 11, 2013

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Renters in Sydney, Perth and Darwin are set to pay more because those cities still lack sufficient housing, a study shows.

However rental growth in Adelaide, Hobart and Canberra is expected to remain subdued over the remainder of 2013, reflecting their weaker local economies, the latest Australian Property Monitors quarterly rental report says.

"Upward pressure on rents is set to continue in Perth, Darwin and Sydney as a chronic shortage of housing continues to put the rental bite on tenants in those cities," APM senior economist Andrew Wilson said.

Dr Wilson said demand for apartments would continue to rise in Sydney and Melbourne, driven by affordability constraints and lifestyle preferences.

But an increase in new apartments in Melbourne would offset rent rises.

APM also said the difference in rent for houses and rent for apartments was narrowing.

During the first three months of the year, house rents remained flat in most capital cities, except for Perth.

Darwin was the most expensive major city, with the median weekly asking rent for a house at $700.

The cheapest major city was Hobart, where the average rent for a house was $310 a week.

In Sydney, the weekly rent for a house was $500, and in Melbourne $360.

Rents for apartments over the March quarter moved up in Perth, Melbourne, Sydney and Adelaide, but were flat in Brisbane, Canberra, Darwin and Hobart.

Darwin was again the most expensive major city, with a median weekly asking rent for a unit of $550.

And Hobart was again the cheapest, at $250.

A unit in Sydney rented for $470 per week and an apartment in Melbourne at $360.

24/04/2014 12:04Sydney, Australia. 24 April,2014
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