Sydney rents to hit $500 a week

Average Sydney rents are likely to increase by at least double last year’s rate to approach the $500 per week level for houses.

After a totally flat 2009, Melbourne rents should resume their long-term upward trend and are expected to rise by five to seven per cent, in line with their long-term growth rate.

Both Brisbane and Perth are poised to outperform the rest of the country as their property markets play catch up to Sydney and Melbourne.

In Perth, median house rents could hit $400, a rise of 11%, in line with the average growth rate of 12.4% experienced since 2003.

Brisbane rents, coming off the same base of $360 as Perth, are also likely to approach $400 with a growth rate closer to 8% expected.

“Although rents should rise across the board, an improving employment outlook will mean more income for renters to be able to cope with these increases in 2010,” said Matthew Bell, Economist for Australia Property Monitors.

“However, this is just another cost on already tightening budget for those Australians that did lose their jobs or were forced to move to part-time work during 2009. The rental increases set for the year ahead will mean many families will have to chase more affordable rentals even further from areas of potential employment.”