Sydney’s rental market has kept the unwanted title of most expensive in Australia. The median rent is now $150 more a week than it is in Melbourne. It comes as official land values in NSW actually fell. But experts say that's unlikely to impact Sydney’s booming property market.
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TVTranscript
00:00 Colombian student Andrea Liguado has been hunting for weeks for a rental.
00:07 This place is a studio and it's bigger than the others I see on the website.
00:14 She's hopeful about this apartment in Strathfield in Sydney's west.
00:18 This is the whole place. No living space and just enough room for a bed at $480 a week.
00:26 I'm very sad because it's very small and so expensive and I need more space with my husband.
00:33 Rents in Sydney increased 16.7% last year.
00:38 The median rent for a house or unit is $700.
00:42 $150 more than the next most expensive city, Melbourne.
00:47 The price of real estate is much higher in Sydney, rents are higher in Sydney.
00:50 We see a lot of demand.
00:52 We've also seen a lot of migration into Sydney over the years post COVID and that's driving up demand.
00:58 Rents have soared but residential land values in NSW dropped 3.8% in the 12 months to July.
01:06 The Value General has registered that slight decline in the market that happened when the RBA started increasing interest rates.
01:14 Experts say the reduction in land values will be dwarfed by the other factors pushing up property prices in Sydney.
01:22 At best it could mean that people paying land tax could have some relief on their next bill.
01:28 That does mean a slight drop in revenue for the state government which is already trying to fund cost blowouts in major projects and record public sector pay rises.
01:39 To see a substantial reduction in rates then we will need to see next year and probably the following year as well to record lower land values.
01:48 Rents are expected to increase again this year but at a slower pace than 2023.
01:53 23.
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