AS THE market continues to offer favourable buying conditions, lower north shore renters are being stung with rental price hikes of more than 10 per cent in some suburbs.
Data from CoreLogic shows rental prices for houses have grown by 20 per cent in Waverton and North Sydney and 13 per cent in Neutral Bay, in the 12 months to February.
In February 2017, rental prices for dwellings classified as a house in Waverton had a $920 median asking rent, while now it has jumped to $1125.
North Sydney has gone from $950 to $1150 and renting in Neutral Bay means paying an extra $150 a week to $1250.
REA chief economist Nerida Conisbee said the lower north shore was outperforming Sydney’s annual rent increase of 4.8 per cent per annum.
“The most in demand suburbs have two things in common, they’re either by the harbour or close to the beach,” she said.
“Most renters are young, and they want to live a certain lifestyle that the lower north shore offers, such as easy access, good activities and close to the city.”
This Sutherland St property in Neutral Bay has seen a rental price increase of $100 to $1500 a week.
Renting in Neutral Bay now means paying an average rental price of $1250 per week.
Ms Conisbee added that migration from interstate and overseas was partly behind the increase.
“Those moving to Sydney are attracted to areas like Kirribilli or Neutral Bay as it offers classic Sydney things like being close to the harbour, the ability to catch the ferry and being close to the city,” she said.
Belle Property Mosman’s head of property investments, Jamie Saksida, said supply and demand issues were causing rental prices to increase in the area.
“On average we’re seeing about 50 people inspect every listing, which is creating a pretty strong market in some areas,” he said.
Mr Saksida said according to realestate.com.au live data, there had been 120,000 rental searches in Neutral Bay alone this month.
“People are attracted to the area for its location, beaches, dining options and for families, the quality of schools.”
McGrath Lower North Shore property manager Bradley Fraser said word of mouth had an influence over where tenants sought to rent.
“I have clients who are told that the area is where you have to be,” he said.
Mr Fraser said for landlords the lower north shore market was a good one to be in.
“It is always a pretty stable market in general, it has a high proportion of professionals who want to be close to the city.”
Despite a price hike in housing, apartment prices have only grown slightly in the past year, with Neutral Bay’s median unit rental price up $10 to $600 a week.
North Sydney was up $20 to $630 and Waverton remained unchanged on $650.
article from www.realestate.com.au