Sydney tenants under significant pressure: Over 30% of income contributed to landlords – Sydney auction clearance rate at 74%

Week’s Key Focus

According to the latest data report, the rental pressure in Fairfield, New South Wales, has reached alarming levels, with nearly half of the households having to allocate over 30% of their income towards rent payments. The Daily Telegraph reports that Fairfield has the highest rental burden, accounting for 48.2%, followed by Byron (47.9%) and Tweed (45.4%) areas. Similarly, Canterbury-Bankstown (42.4%) and Liverpool (40.9%) local government areas also face significant leasing pressures.

From January 2022 to May 2023, the median rent in Fairfield has skyrocketed by $114, exacerbating the housing affordability crisis. The City of Sydney is also grappling with a substantial rental burden, with 20,697 individuals affected. However, this accounts for only 32.5% of the population. In the Greater Sydney region, the Blue Mountains area ranks high in terms of rental pressure, with 44.7% of households spending over 30% of their income on rent.

The rental market in Sydney continues to heat up, with the median weekly rent rising from $599 to $713 between January 2022 and May 2023. The most significant increase occurred from March to May 2023, with a weekly surge of $56. Woollahra stands as the most expensive rental suburb in the state, with rents soaring to $1503.

In response to this challenging situation, the state government has identified increasing social housing and housing supply as key priorities. Incentives have been introduced to encourage high-density buildings to allocate at least 15% of total floor area to affordable housing. However, further efforts are needed to address the tight housing market in Sydney.

Furthermore, according to the recent “2023 Street Count” data, the number of people experiencing homelessness has been steadily increasing. This year, the count reached 1623 individuals, compared to 1207 individuals last year, underscoring the impact of the rental crisis on low-income groups.

Carlingford

Auction Results This Week

Sydney: 467 properties were auctioned, with 292 reported results, 215 properties sold, resulting in a clearance rate of 74%. The total auction value amounted to 234,992,350 AUD, with a median house price of 1,450,000 AUD.
Melbourne: 447 properties were auctioned, with 329 reported results, 222 properties sold, resulting in a clearance rate of 67%. The total auction value amounted to 178,022,900 AUD, with a median house price of 875,000 AUD.