Selasa, 16 Februari 2010

Rent and Sales Report 90 (Dec 09)

The latest issue of the always interesting Rent and Sales Report is out, and in its analysis this morning the Herald is doing the property spruikers jobs for them. Their headline:

Rents in outer suburbs rise 9.4%

Here's another they might have used:

Rents in inner and middle suburbs stagnate

As always, the Rent and Sales Report bares closer and more careful reading than the headlines suggest.

The main breakdown for median 'new agreement' rents:

  • Inner ring: up 2.2 per cent for the quarter to December, 0 per cent for the year
  • Middle ring: 0 per cent for the quarter, 0 per cent for the year
  • Outer ring: up 2.9 per cent for the quarter, 6.1 per cent for the year
  • Sydney overall: up 1.3 per cent for the quarter, 3.9 per cent for the year
  • New South Wales overall: up 2.9 per cent for the quarter, 6.1 per cent for the year.

Where did the Herald's figure – 9.4 per cent – come from?

This figure is for three-bedroom houses and flats in the outer ring of suburbs. It's the largest annualised figure on the first table of the report – that's why they ran with it (that's how time-pressed journalists read the Rent and Sales Report: scan the first table for the biggest number – there's your story).

And, as always, the figure relates to rents for new tenancies commencing in the relevant quarter. Tenancies commencing in the December 2009 quarter represent about 9.2 per cent of all private tenancies in the outer suburbs (and tenancies in three-bedroom dwellings would be somewhat less). Outer suburb tenancies commencing in the December quarter represent less than 3.5 per cent of all tenancies in Sydney.