Pilbara rents tripled in last 5 yrs

THE cost of renting a house in the booming Pilbara mining region has more than tripled over the past five years to $1650 a week, making it the most expensive area to rent in Australia.

While rents in the Western Australian mining hub rose 1.6 per cent in the June quarter, national rents rose almost three per cent and average capital city rents remained flat in the same period, the latest RP Data figures show.

The Sydney and Perth house markets recorded solid rental growth of 2.2 per cent and 2.6 per cent respectively.

The RP Data June quarter Rent Report showed rental growth in the capital cities tracked below the national average over the past 12 months, with combined capital cities rents increasing by 2.7 per cent over the year.

“Nationally, rental growth has actually been slightly higher over the year, with rents increasing by 2.9 per cent which is likely a result of the most recent quarterly results,” RP Data report author Cameron Kusher said.

Darwin is still the most expensive capital city to rent a house, with residents paying an average of $520 per week.

However, the Pilbara region continues to be the standout performer due to housing shortages and the booming resources sector.

The median cost of renting a house in the Pilbara rose 18.5 per cent in the year and 327 per cent over five years, more than anywhere else in the country.

The high rents helped justify a WA government decision to encourage high-rise development in Pilbara towns amid reports of overcrowding and unchecked development.

The RP Data figures showed housing rental growth unchanged in Melbourne, Brisbane, Adelaide, Darwin and Canberra in the June quarter.

Mr Kusher said limited new development during 2011 was likely to add to upwards pressure on capital city rental rates.

Date: 11 July 2011 | For the full report, please visit http://www.perthnow.com.au