October 12, 2010

Canberra and Darwin are Australia's most expensive cities to rent

DARWIN and Canberra remain the most expensive Australian cities to rent a home.

This is occurring as the government and resource sectors, coupled with a shortage of housing stock, continue to push the cost of accommodation higher, The Australian reports.

Rents in Darwin and most other capital cities were steady for the three months to September.

But resource projects in the Northern Territory and tight supply are expected to trigger more increases in the Territory capital, where some residents have been seeking commercial warehouses as an affordable housing alternative, according to real estate agents.

The RP Data rent report showed Darwin's average house rents were $520 a week, followed by Canberra, where rents had risen 3.1 per cent in the past three months to $495 a week.

RP Data analyst Cameron Kusher said while the biggest rises in the coming months would be in Sydney and Melbourne, rents in those cities would still not overtake Canberra or Darwin, which had transient populations.

"People would fly in for the week and go back to their home somewhere else," Mr Kusher said of the two markets.

In the regions, the mining boom also continues to keep rents high, with the cost of renting a house in the Pilbara region in Western Australia still about $1500 a week on average. Mirvac, Stockland, Investa and Aspen are among the property giants circling for opportunities.

Warren Andrews, the director of Claridges and Lin Andrews Real Estate in Darwin, said many people shared housing in Darwin because of the expense.

Darwin mother of four Samantha Watts, and her husband, Dustin, pay $480 a week for a three-bedroom house in the northeastern suburb of Karama. About half of the family's income goes towards rent, which the couple say has continued to increase.

Credit: News.com.au