More than half of Sydney suburbs rents climb after tax changes

Rents have soared by up to $100 a week in parts of Sydney in the months since landmark property tax reforms were announced with the May federal budget. Exclusive REA Group figures have revealed house rents climbed in 57.6 per cent of Sydney suburbs over the three months to July, while unit rents increased in 61 per cent of suburbs. The quarter tracked two of the months since changes to negative gearing and capital gains tax were announced in the budget. Recent rent hikes have meant Sydney now has more than 100 suburbs where the typical tenants pays rent of over $1000 per week. Property analyst Kent Lardner, the head of research at property data group FoundIt, said changes to negative gearing and capital gains tax announced in the budget were discouraging investors from making new purchases. This was stagnating rental supply at a time when tenant demand was continuing to rise due to immigration and high numbers of international students, Mr Lardner said. “If a rental is sold, it’s not being replaced,” he said. “This has meant a loss of rental stock. One room in a four-bedroom sharehouse listed for $800pw in Redfern. Picture: Flatmates. Kingsford room for rent $1,700pw, bills not inc...