A photo has emerged online of people crowding outside a Sydney apartment building for a rent inspection, highlighting the high demand for a limited supply of properties available to rent in the city.
At least 20 people can be seen huddled around an officer outside the gates of the World Tower in the photo posted to Reddit.
The Meriton Suites World Tower is a residential high-rise on Liverpool Street in the heart of Sydney’s CBD and is one of the tallest residential buildings in the city.
There are currently two rentals on realestate.com.au: a two-bedroom, two-bathroom on the 35th floor for $1180 per week and a one-bedroom with studio on the 45th floor for $720 per week.
news.com.au understands the photo inspection was for the latter and has contacted the agent for further comment.
Australians expressed their sadness and frustration in the Reddit post, with many revealing how difficult it is at the moment to find an affordable house to rent in Sydney.
“Feeling like non-tenants don’t know is so disheartening,” one person wrote. “It’s when you drive up to an apartment/house, especially if you’re excited about it, and you see a long line of people snaking around the block.”
Another person wrote: “This is also the case in other Sydney suburbs. I went to an open day in Ashfield on a weekday and there were about 20 couples who turned up.”
Others shared similar experiences outside of Sydney.
“You started seeing the same people every Saturday, after a while, and doing the awkward haha, here we go again,” one person said.
Another added: “And then you don’t see them, and we hope they find a place, but also, I hope it’s your turn this time.”
“Just been through this. 80 people attended an inspection in Brisbane,” wrote another.
PropTrack’s latest rental report for the June quarter found the number of tenants per property listed on realestate.com.au was up 28% year-on-year in capital cities, with Sydney and Melbourne seeing the biggest increases.
The number of rental listings in Sydney fell by 21% last year. The biggest declines in the charts were recorded in Melbourne (-25.7%) and Brisbane (-24%).
Overall, the number of new listings entering the market was 13.8% below the decade average in June.
Strong rental demand and limited supply are causing significant increases in advertised rental prices, according to the report.
Rent pressures are expected to continue as people will be less inclined to leave their rental as they struggle to find another, which is likely to push the cost of renting even higher.
PropTrack’s director of economic research and report author Cameron Kusher said rising rental prices in major cities will continue for some time, particularly as more activity returns to those areas post-Covid .
“With overseas and interstate migration returning with borders now reopened, it looks likely that rental conditions will tighten further over the coming months,” he said.
“This is likely to be most evident in Sydney and Melbourne, where demand and rental prices fell during the pandemic but are now recovering rapidly.”
The report also found that the new fiscal year means higher tax for investors and higher interest rates in many jurisdictions.
As a result, many landlords are likely to try to pass these rising costs on to tenants where they can, resulting in even higher rents.
Rental prices grew at the fastest pace in seven years in the year to June, rising by seven per cent.
Rental prices in Sydney have grown by 6% over the past year, after falling during the early part of the pandemic.
The average rental price for a house in Sydney is $620 per week and $500 per unit.
Nationally, the average weekly rent for a house is $490 and $440 for units.
The data has also shown that tenants are falling behind on rent payments as the cost of living rises.
Data released from a document signing tool used by property managers shows the number of rent arrears notices issued since January this year increased by 45% in NSW.
The FLK IT OVER report found there had been a 220% increase in the number of rent increase notices issued over the past six months.
Read related topics: Sydney