Sydney unit rental prices plummet, barely $8 ahead of Canberra
Sydney's inner city unit market recorded the second largest falls this year down -5.7 per cent over 2020, according to CoreLogic’s Rental Review for the December 2020 quarter.
In terms of rental dollar value, Sydney has long been the most expensive market in which to rent, however 2020 saw Canberra surpass Sydney as the most expensive market to rent a house at $624 p/w, $10 p/w more expensive than the typical house in Sydney.
Sydney units however maintained their position as the nation’s most expensive capital city in which to rent a unit despite the $36 reduction recorded in the year to December.
Median unit rent's in Sydney are currently $504, just $8 ahead of Canberra.
Unit rental prices across the city are down -0.6 per cent for the month, -2.7 per cent for the quarter and -5.7 per cent for the year. However for the decade, the rental market is up 11.8% for units.
The area's hit hardest in Sydney were the City & Inner South down -12.8 per cent and North Sydney & Hornsby down -7.1 per cent. Following close behind those loss leaders were Ryde and the Inner West, -6.9 per cent as well as Parramatta and the Inner South, -5.3 per cent.
Some regions did see improvement across the wider NSW region including Sutherland and the Central Coast which saw the strongest growth at 5.5 per cent and 5 per cent respectively.
Rental conditions in regional markets have been outperforming capital cities with unit markets recording weak conditions across the largest capital cities.
December 2020 saw Australia’s dwelling market record the largest monthly increase in rental rates since 2010, up 0.6 per cent over the month. The 10 year record can be attributed to growth across the house market which saw a 0.9 per cent rise in rental rates over the month, more than offsetting a -0.1 per cent fall in unit rents.
Across the broad regions, regional markets were the standout performer with both house and unit rents up 1.1 per cent in December, taking house rents 2.9 per cent higher over the final quarter of 2020 and unit rents 2.6 per cent higher.
Unit rental rates across the capital cities fell -0.3 per cent over the month to be down -1.6 per cent over the December quarter. Despite the diverse performance over the year, national rents rose by 1.9 per cent annually in 2020, which was the largest annual increase across the dwelling market since mid-2018.
