Sydney rents fall as vacancy rates climb across Australia

Summarised from 2 outlets · Updated 8 Oct, 17:55 · Archive

Australian rents grew at their slowest pace in almost two years in the September quarter, with Sydney rents falling 0.4 per cent.

Australia's rental market has experienced its slowest price growth in almost two years, defying expectations of a surge following Labor's budget changes to investor tax breaks. In Sydney, rents fell 0.4 per cent in the September quarter, leading a broader slowdown in rental growth as vacancy rates edged up across the nation, according to data provider Cotality.

Across Australia, rents grew at 0.5 per cent in the quarter, down from 1.6 per cent in the June quarter and 2.1 per cent in the three months to March. Annual rental growth eased from 5.9 per cent to 5.5 per cent, as the national median dwelling rent hit a record high of $713 per week. Sydney's vacancy rate was 2.5 per cent, compared with 1.8 per cent a year earlier, while the national vacancy rate hit 2.1 per cent in September.

Cotality research director Tim Lawless said the market was softening as more renters reached their affordability limits and adjusted their household sizes. With rental affordability stretched and broader cost-of-living pressures persisting, renters are forming larger households, staying in family homes longer or seeking more affordable accommodation further afield, he said.

How it is being reported

• Sydney rents fall despite fears of a post-budget spikeEven though Labor's tax changes have pushed some investors out of the market, rental vacancy rates have climbed and price growth has eased across Australia.The West Australian · 8 Oct, 17:32
• Sydney rents fall despite fears of a post-budget spikeEven though Labor's tax changes have pushed some investors out of the market, rental vacancy rates have climbed and price growth has eased across Australia.Perth Now · 8 Oct, 17:32

In this story: Sydney · Australia · Cotality · Tim Lawless

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