Sydney Rents Continue to Surge
Monday, 28 July 2008
In the three months to June the average rent for a Sydney house jumped by a massive 8% to $420 per week. The rent for the average Sydney unit has also hit the $400 per week mark and across the city vacancy rates remain at critical levels of just 1%. Michael McNamara of Australian Property Monitors believes there are a number of contributing factors to the current situation, saying "the combination of generation Y leaving home, strong migration patterns and a weak building sector is intensifying demand."
As rents continue to escalate, purchasing property makes growing sense for both investors and first time buyers. The one factor holding many back is the current high cost of borrowing. While tough interest rate conditions mean that for the near future a flat market can be expected, as conditions ease we can expect to see pent up demand translate into a highly active market with rising prices.
