14 February 2011
Todays rent figures, released by the NSW Government, reveal that rents for three bedroom Sydney homes jumped by 10 per cent in 2010 – $40 a week – more than double the 2009 increase. The figures were set out in Housing NSWs Rent and Sales Report for the December quarter. The report tracks all new residential tenancy agreements.
The Urban Taskforces chief executive, Aaron Gadiel, said the surge in residential rents was an inevitable consequence of a massive housing undersupply.
Theres a huge disconnect between where people want homes, and where the homes are available, Mr Gadiel said.
The real tragedy is that developers are ready and willing to supply new homes where theyre needed, but the planning system and high development levies are holding us back.
Mr Gadiel said that average rents for three bedroom homes increased by $40 over 2010 to $440 a week – a 10 per cent increase.
Thats four times the rate of inflation, he said.
Its also a much bigger increase than 2009s 3.9 per cent increase.
There was also a big leap in average rents for two bedroom homes, increasing by $30 to $430 a week – a 7.5 per cent increase.
Mr Gadiel said that house rents soared across Sydney, by 10.6 per cent in the inner suburbs, and 8.9 per cent and 8.8 per cent in the middle and outer suburbs respectively.
The middle ring suburbs saw average weekly three bedroom house rents increase by $40 to $490, while renters in outer ring suburbs were hit by a $30 increase, to $370.
Theres clearly strong upward pressure on rents, flowing from the lack of new housing built in Western Sydney.
Residential lot production is presently running at less than half the level required by the NSW Governments own Metropolitan Strategy.
Mr Gadiel said the shortage of new compact homes in Sydneys inner suburbs was clearly evident.
Average rents for two bedroom apartments in the inner suburbs jumped by $50 to $550 a week – a 10 per cent increase.
This is the price for the success of not-in-my-backyard campaigns by existing residents and local politicians.
Mr Gadiel said that no Australian capital city approves less new homes per head of population than Sydney.
The citys per capita housing supply has halved since 2003, he said.
If rents are to be kept affordable we need a much stronger supply of new housing, both in inner suburbs and outer suburbs.
We need to see lower, more transparent, development levies, greater investment in urban infrastructure and a more flexible planning system that responds to the requirements of the whole community, not just those who are trying to block new housing.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
Please note: Rent tables for individual local council areas are in the PDF below.
