Australian apartment building rents for $7 per square foot
Posted On June 16, 2021
AUSTIN, Texas — Australia’s largest apartment building is offering up to $7 for every square foot of floor space it has in its rentals.
The Sydney Harbour Development Corp. said Wednesday that rents for 1,400 apartments at the Sydney Harbour Tower, the world’s tallest, are expected to go up to an average of $6 per square feet in 2019.
I have a real estate agent who said to me, “Well, if you want to be in a big city, you have to pay $20 for every floor you have.”
It’s a huge change for Sydney, where rents for apartments have been declining since the mid-2000s.
In a statement, the Sydney Tower said it has made changes in its leasing process to accommodate the rising rents and is looking to rent more apartments for tenants.
Auckland’s rental prices are expected increase by an average 25% in 2019, while rents in Sydney are expected decrease by 8%.
The tower’s property manager, Mike Cunneen, said the new rents were a result of the global economic climate and the city’s housing affordability crisis.
Cunneens office at the Tower was full Wednesday.
He said the rents for the 1,200 apartments were higher than the average rental in the city.
Rents for apartments are determined by an independent agency, called the Sydney Housing Agency, that uses a combination of factors, including the area’s demand for rentals, population density, and affordability.
For example, Sydney has a population of more than 3 million, but a vacancy rate of around 15%.
Renters who rent are given a maximum monthly rent of $2,000.
While rents in the U.S. have increased slightly, they remain lower than in Sydney.
“I’ve got a real-estate agent in Australia that said the price increase in Australia is going to be a little higher than in the United States,” said Cunnes office manager Michael Harkins.
We’re going to see prices go up for a few months, then we’re going the other way and then we are going back to where we were, he said.
As more and more apartments are built, more and better rental properties are available, Harkin said.