Friday, August 12 2022

A photo has emerged online of people crowding outside an apartment block in Sydney for a rental inspection, highlighting huge demand for a limited supply of properties available to rent in the city.

At least 20 people can be seen crowding around an officer outside the gates of the World Tower in the photo posted on Reddit.

The Meriton Suites World Tower is a residential skyscraper on Liverpool Street in the heart of Sydney’s CBD and is one of the tallest residential buildings in the city.

There are two rentals currently listed on realestate.com.au – a two bedroom, two bathroom on the 35th floor for $1180 per week and a bedroom with office on the 45th floor for $720 per week.

news.com.au understands the inspection pictured was for the latter and has contacted the agent for further comment.

Australians expressed their sadness and frustration on the Reddit post, with many revealing how difficult it is currently to find an affordable house to rent in Sydney.

“There is a feeling that non-tenants don’t know it’s so disheartening,” one person wrote. “It’s when you drive up to an apartment/house – especially if you’re excited for it – and see a long line of people winding their way around the block.”

Another person wrote: “It’s like that in other suburbs of Sydney too. I went to an open house in Ashfield on a weekday and there were like 20 couples who showed up.

Others shared similar experiences outside of Sydney.

“You started seeing the same people every Saturday after a while and giving the awkward nod of haha ​​here we go again,” one person said.

Another added: “And then you don’t see them, and hope they’ve found a spot, but also, hope this time it’s your turn.”

“We just went through that. 80 people attended an inspection in Brisbane,” someone else wrote.

PropTrack’s latest rental report for the June quarter found that the number of tenants per property listed on realestate.com.au increased by 28% year-on-year in the capital cities, Sydney and Melbourne experiencing the greater increase.

The number of rental listings in Sydney has fallen by 21% over the past year. The largest declines in enrollment were recorded in Melbourne (-25.7%) and Brisbane (-24%).

Overall, the number of new listings on the market was 13.8% below the decade average in June.

Strong rental demand and limited supply are driving significant increases in advertised rental prices, according to the report.

Rental pressures are expected to continue as people will be less likely to leave their rental with difficulty finding another, which will likely drive up the cost of renting further.

PropTrack director of economic research and report author Cameron Kusher said rising rental prices in major cities will continue for some time, particularly as activity returns to these areas after Covid. .

“With the return of overseas and interstate migration with the reopening of borders, it seems likely that rental conditions will tighten further over the coming months,” he said.

“This will likely be most evident in Sydney and Melbourne, where rental demand and prices have fallen throughout the pandemic but are now rebounding rapidly.”

The report also revealed that the new financial year means higher property tax burdens for investors and higher interest rates in many jurisdictions.

As a result, many landlords will likely seek to pass these rising costs onto tenants where they can, driving even higher rents.

Rental prices rose at the fastest pace in seven years in the year to June, rising 7%.

Rental prices in Sydney have risen by 6% over the past year, after falling at the start of the pandemic.

The median rental price for a house in Sydney is $620 per week and $500 for a unit.

Nationally, the median weekly rent for a house is $490 and $440 for units.

The data also showed tenants falling behind with rental payments as the cost of living soars.

Data released from a document signing tool used by property managers shows the number of rent arrears notices issued since January this year has jumped 45 per cent across New South Wales.

The FLK IT OVER report found that there had been a 220% increase in the number of rent increase notices issued over the past six months.

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