Rent surge in Sydney

[Stuju]

We knew prices were going up but its getting to silly prices now !!!!

 

 

Sydney does it tough in rent surge

 

Author: Brian Robins

Date: May 8, 2008

Publication: Sydney Morning Herald (subscribe)

Renting a two-bedroom unit has risen to $430 a week on average in inner-city Sydney as prices continue to surge across most local government areas, the latest housing report shows.

According to the NSW Housing report, rents are rising more than 10 per cent across most Sydney council areas in the March quarter.

 

Rents for a two-bedroom unit have risen by more than $10 a quarter for the past six straight quarters, increasing to $430, on average.

The rises were concentrated in the inner ring of the city, but with rent rises starting to pick up speed in selected outter suburbs.

Rents rose as high as 19 per cent in Canterbury for a two-bedroom flat, followed by 18 per cent in Hunters Hill and 17 per cent in Randwick and Marrickville.

For a three-bedroom house, rents in Leichhardt rose 22.9 per cent, and by 32 per cent in Sydney, although this figure is distorted by the lack of properties available. Rents in Strathfield, Willoughby, Ashfield Randwick, Kogerah, Ku-ring-gai all rose by 20 per cent or more.

Rents are increasing faster than wages," said NSW Housing Minister Matt Brown, who is also Minister for Tourism.

"The CPI last year was 3.9 per cent, whereas the median rent for a two-bedroom unit in Sydney has gone up by some 12.5 per cent. These numbers confirm that families are doing it tough."

Mr Brown cited high interest rates for preventing people from building new homes, adding to the pressure on rentals for existing properties.

The government said financial assistance is available for some people trying to get into the market, typically helping to finance the bond needed at the start of a lease, and perhaps the first few weeks of rent, as well.

Mr Brown is one of the largest property investors among State MP's, but he refused to comment when asked whether he had hiked rents on his own properties.

Mr Brown, who was caught up in the recent corruption scandal in Wollongong Council, having received donations from developer Glen Tabak, who was involved in the scandal. in its wake, Mr Brown said he would refuse future donations from Mr Tabak.

The report also showed that the largest fall in sale prices of residential properties in the March quarter was in Mosman, down 15.4 per cent, followed by Willoughby with a 12.3 per cent decline. Prices in the eastern suburbs remained strong, rising in Woolahra by 19 per cent and in nearby Waverly by 6.7 per cent.