Battlers and the beach - Campbelltown and Pittwater units strongest Sydney rental markets

Pittwater at the far end of Sydney's northern beaches and Campbelltown in the outer south-west have been the strongest-performing rental markets in and around Sydney over the year to June, according to research by PRDnationwide.

Pittwater and Campbelltown units recorded annual rental increases of 16.3% and 14.8% respectively over this period.

RP Data shows that Pittwater units have a weekly rental of $320 while Campbelltown has a median weekly rental of $305.

There was also double-digit rental growth in Shellharbour, the southern beachside suburb of Wollongong and in Lake Macquarie, about 150 kilometres north of Sydney as the outer ring of Sydney and outer parts of the greater metropolitan region (GMR) experienced strong growth in median rent prices.

Source: PRDnationwide

The top-performing Sydney housing rental market was the inner-west suburb of Canada Bay, about 11 kilometres from the CBD. Canada Bay and Maitland (in contrast to its unit market) were the only two localities to manage rental growth in excess of 10% for the 12-month period.

Overall, house rents in Greater Sydney, which includes municipalities between Sutherland in the south and Wyong in the north, increased by 4.5% over the period, compared with a rise of 5.6% for the state.

Source: Housing NSW

For the standard three-bedroom house, the top performers were Hurstville (7.3%) and Shellharbour (7.1%).

"Interestingly, the northern part of the greater metropolitan region (GMR), which includes the central coast and Hunter regions, dominated the top-10 list for a three-bedroom house, with five entries," notes PRDnationwide.

The Mosman, Woollahra and Waverley municipalities recorded the highest median rent.  These municipalities capture some of Sydney’s most dense suburbs, and Mosman and Woollahra are among the most exclusive.

Woollahra has a median weekly rent of $1,275.

“The high rent prices are the result of scarcity in detached houses in these locations, and their proximity to iconic beaches, the Sydney CBD and vibrant commercial centres,” says PRDnationwide.

The five areas to record a decline in detached housing rent – Wollongong, Lane Cove, Botany Bay, North Sydney and Woollahra – reveal a shift toward affordability, says the property group.

In North Sydney, the median rent for a house declined by 10.8% over the 12 months between June 2011 and 2012.

“In the Botany Bay LGA, the decline in the median house rent may be linked the rise in medium density developments, with tenants preferring modern apartments over mostly older house stock,” says PRDnationwide.

The strong increase in rent on the outer parts of the greater metropolitan region is also linked to the search for affordability, with the high rental growth areas of Shellharbour, Wyong and Cessnock also identified in the most affordable in the Sydney greater metropolitan region.