Sydney landlords demand up to $12,500 a week amid rise in mega rental deals
With the rental crisis deepening, Sydney now has more than 500 properties listed for long-term lease with rent of $2000+ a week, including one where the landlord wants $12,500/pw.
Sydney has more than 500 properties currently available for long-term lease with rent of over $2000 per week, double the number of properties listed for under $300.
And roughly one in 10 of those pricey properties are listed with rents of over $5000 a week, analysis of listing figures shows. This included the city’s priciest rental: a $12,500 per week Vaucluse home available for six month lease.
It comes as continuing housing shortages and landlords’ mounting mortgage bills force up prices in what’s been described as the worst rental crisis in a generation.
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It’s made for some jaw dropping rental figures that would have beggared belief only a year ago, when market conditions were not as strained and Australia had just reopened its borders to migrants.
Rent for the full six month lease of Sydney’s priciest rental would total $325,000 and would balloon to $650,000 if extended to a full year. The bond for the luxury Vaucluse rental is $50,000.
The upper north shore’s priciest rental, lauded as a good option for parents with daughters at Pymble Ladies’ College, is listed for long-term lease at $10,000 a week or $520,000 a year.
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Housing experts said the sky high rentals reflected widespread housing shortages, rampant tenant demand and collapsing building approvals, which have forced up rents across the board.
There has also been increased demand for high-end rentals, often from affluent families needing accommodation while their existing home is knocked down to make way for a new build.
The pricey listings have come on the back of widespread rent rises across Sydney over the past year.
The average rent on a Sydney home is now a record high of $758 per week, about 25 per cent (or $153 per week) higher than it was a year ago, according to SQM Research.
“We are seeing pretty strong rent everywhere,” said PropTrack analysis Angus Moore.
“It’s not just small isolated pockets of growth, which is what we had a few years ago or during the (Covid) pandemic. It’s rising across areas now, across the board.”
“The question is, how much longer can it go on? Given how tight rental markets are and there’s no sign of that abating, it’s likely to continue for much of this year.”
Real Estate Institute of NSW chief executive Tim McKibbin said expensive rental prices indicated there weren’t enough properties to go around.
“Queues at open homes are getting longer and longer,” he said.
“We have to increase the supply of properties available for tenants, but we haven’t heard from any political leaders about what they will do about the lack of supply.”
There were just over 9300 properties available for rent at the start of March, down from about 15,100 at this time last year.
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A search of rentals listed on realestate.com.au showed there were about 580 advertised with rent of $400 per week or lower, of which 200 of those were under $300 per week.
Landlords who have turned their up-market properties into holiday rentals have been pocketing even larger rents, with one Point Piper home currently available for $38,500 a week for short-team lease only.
Originally published as Sydney landlords demand up to $12,500 a week amid rise in mega rental deals