Sydney’s lower north shore has had significant growth in rents in the year to December, making it the most popular rental area in the city.
Despite the area – which includes suburbs such as Northbridge and Castlecrag – listing as the most sought after area, it’s not necessarily the most desirable.
In fact, it’s popular because it’s the next best thing.
According to Domain Group’s latest Rental Report, families and expats are moving to Northbridge and Castlecrag because they have more available properties on the market and rents are 10 to 20% less than close by, highly sort after suburbs such as Mosman but still offer many of the same luxuries.
As a price comparison, here is a two bedroom, two bathroom, one parking apartment in both Northbridge and Mosman.
The apartment in Northbridge is on the market for $600/ week. The one in Mosman $995.
Senior economist at the Domain Group said overall Sydney rents continued to rise this quarter despite record activity from investors.
“The median asking rent for houses increased to a new peak of $520 per week for an overall
increase of 4% in 2014,” he said, adding that the trend is set to continue into 2015.
“Upward pressure on rents is set to continue through 2015, particularly in the robust Sydney market where underlying demand continues to outstrip supply.
“Generally high and rising rents, tight vacancy rates and consolidated gross yields are offsetting recent concerns regarding possible over-investment in residential property – particularly in the Sydney market.”
Bellevue Hill listed as the most expensive place to take a lease, with the median weekly asking rent of $2300 — 30% higher than the next most expensive suburb on the list, Mosman at $1600.
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