A property in Trevallyn recently leased at a whopping $700 per week, providing further evidence that rising rental prices around Launceston are refusing to abate.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Yet even with the rising prices demand remains high, according to Knight Frank business development manager Naaman Fraser, who said the Trevallyn property - which recently sold for $825,000 - was quickly snapped up after he received two applications in the first 48 hours.
According to the most recent statistics from the Real Estate of Tasmania, the price of renting a house in Trevallyn has jumped by almost a third in the past five years, pushing the median price to around $410 per week.
Rentals are pushing even higher outside of town, Mr Fraser said, noting that he recently leased a house in Windermere at $850 per week.
Meanwhile, demand is reaching dire levels at the lower end of the market as steady rent increases continue to price people out of the market.
Mr Fraser recently leased a $350-per-week property in Mayfield and received more than 30 applications, many of which simply didn't meet his agency's affordability rating - which stipulates rent be no more than 35 per cent of the applicant's weekly wage.
Mr Fraser said he's felt frustration in the community over the affordability requirements, but said they're in place to protect the tenants as much as the homeowners.
"If something happens like an accident or you get sick, you might not have the surplus to catch up and can potentially lose your home and get a bad reference."
With affordable rentals in short supply, housing and homelessness services provider Shelter Tasmania has noted an increase this year in people seeking help.
Shelter Tasmania chief executive Pattie Chugg said the costs in the private rental market were outstripping renters' incomes.
In a recent budget submission, Ms Chugg went on to stress the need for more affordable housing as Tasmania looks to reopen its borders.
"When our borders re-open, successful management of the COVID-19 pandemic will depend on everyone having a safe and secure home, where they can self-isolate if needed."
What do you think? Send us a letter to the editor:
Joshua Peach
Got a story tip? Email me on joshua.peach@austcommunitymedia.com.au
Got a story tip? Email me on joshua.peach@austcommunitymedia.com.au
