21 November 2011
The recently released Housing NSW figures for the September Quarter indicate that Sydney rents are continuing to increase well beyond inflation, according to the Urban Taskforce.
Chief Executive Officer Chris Johnson said the statistics come from an analysis of the data held by the NSW Bond Board, which is considered to be the most accurate.
Across the inner ring of Sydneys suburbs the annual increase for one bedroom apartments was 7.1%, for two bedroom apartments 5.5% and for three bed units the increase was 9.0%, Mr Johnson said.
The middle ring didnt fare much better, with rises of 8.6% for one bed units, 5.0% for two beds and 6.2% for three beds, he said.
Mr Johnson said some suburbs across Sydney have had very high rent increases, much higher than the CPI.
Botany Bay had a rise of 22.6% for one bed apartments, 12.5% for two bed and 15.6% rise for three bed units.
Even North Sydney and the City of Sydney have had significant rises, with North Sydneys one bed units going up 8.4% and the City of Sydney having two bed units rise in rent by 6.6% and three bed units by 9.0%.
The outer ring of suburbs had a less significant rise but still averaged a 4% rise for one bed units, a 6.1% rise for two bed units and a 5.6% rise for three bed units.
Mr Johnson said the figures show that the poor supply of new houses and apartments in Sydney is having a major effect on rental costs.
It is essential that the NSW Government understands that there is a growing crisis in housing supply that is driving more people into the rental market and so driving rents up.
We need to unlock the blockages to housing supply by lowering levies and by simplifying the planning system.
Most rental is in apartments and the supply of this building type is constrained by NIMBY communities against change.
To accommodate the 770,000 new housing units required by 2036 as outlined in the Metropolitan Strategy, we will need a lot more apartment buildings built in infill areas close to transport nodes.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
