Rents Surge 30% in a Year! Sydney’s Hottest Suburbs Face Severe Shortages as Tenants Struggle — Sydney Auction Clearance Rate at 71%

Week’s Key Focus

The latest Domain Rent Report shows that in the year to September, the median weekly rent for Sydney houses rose by 1.3% to a record $780, marking a new high. However, several suburbs far outpaced this average — North Turramurra surged 30.4% to $1,500 per week, Double Bay jumped 28% to $2,750, and Clovelly climbed 21.2% to $2,000. In Chinese-populated suburbs, East Killara recorded a 17.9% rise to $1,650 per week, highlighting the growing rental pressure across the city.

Apartment rents also continued to climb, rising 1.4% in the third quarter and 4.9% over the year, reaching a record $750 per week. Some outer suburbs saw even sharper increases — apartment rents in Katoomba rose 16.1%, Telopea by 15.4%, Woy Woy and Point Frederick by 14.3% and 12.3% respectively. Among Chinese-favoured areas, Marsfield stood out with a 9.7% rise to $680 per week. Domain’s Head of Research, Nicola Powell, noted that “family-oriented suburbs with quality schools and convenient amenities have experienced the most significant rent growth.”

As rents continue to soar, many tenants say they are struggling to keep up. Tom Murray, a 31-year-old healthcare worker living in Bellevue Hill, shares a three-bedroom apartment with his brother and a friend, paying $1,400 per week. “The weekly cost is overwhelming — it takes up a huge part of my income,” he said. “I’d love to buy a home with my brother, but it’s almost impossible to save.”

Experts warn that the proportion of income spent on rent is steadily rising, eroding household savings. Leo Patterson Ross, CEO of the Tenants’ Union of NSW, said that the annual rent for a typical Sydney house or apartment now rivals a home deposit, forcing many to move further away, share housing, or live in converted garages or balconies. According to Domain, the annual rent for a typical Sydney house is $40,560, while for an apartment it is $39,000. In Double Bay, rental demand is particularly strong. Shannon Cleary of Ray White Touma Taylor said the suburb has become the centre of a “perfect rental storm,” driven by height restrictions, premium location, and the arrival of new luxury apartments. “Double Bay offers excellent transport, high-quality living, and the charm of a European village,” she said. “Rents in such lifestyle suburbs will continue to rise.”

NORWEST SYDNEY

Auction Results Last Week

Sydney: 1,189 properties were scheduled for auction, with results reported for 716. A total of 506 properties were sold, achieving a clearance rate of 71%, with a total auction value of AUD 605,395,304 and a median house price of AUD 1,675,000.

Melbourne: 1,188 properties were scheduled for auction, with results reported for 809. A total of 595 properties were sold, resulting in a clearance rate of 74%, with a total auction value of AUD 514,914,609 and a median house price of AUD 988,500.