Both apartment and house rents have seen substantial increases, rising by 17.2% and 13.6%, respectively. Currently, the average house rent in Sydney is AUD 750 per week, while apartment rents are AUD 680 per week. These figures raise concerns for many tenants as the rental market enters its busiest period of the year, with both supply and competition intensifying.

While rental price growth has slowed in other parts of the country, the situation in Sydney has not improved. Angus Moore, Senior Economist at PropTrack, pointed out that the rental growth momentum in Sydney remains strong.

He stated, "As we enter the new year, the situation is much the same across Sydney. We see strong double-digit growth in both house and unit rents. This pace of growth is very fast and is being achieved in a situation where there is not much available rental supply. The vacancy rate for rents in December was below 1.5%."

The imbalance between supply and demand and the lack of housing are among the main reasons for the rise in rents. Mathew Tiller, Research Director at LJ Hooker Group, mentioned that the shortage of newly built homes, whether in social housing, affordable housing, high-density housing, or senior apartments, will continue to be an issue in the housing market over the next year.

While the rate of rent increases is expected to be lower than the levels of the past 12 months, it will still put pressure on family budgets and increase demand for shared housing.

Although the situation in the New South Wales region has eased slightly, with house and unit rents remaining unchanged at AUD 520 per week in the last quarter, the trend of rising rents still makes many tenants uneasy. This could lead to young people moving back home with their parents or turning to become rental investors.

Faced with the reality of historic highs in Sydney's rental prices, concerted efforts from the government, developers, and stakeholders are needed to alleviate the housing supply and demand imbalance. Firstly, efforts should be intensified to increase the construction of housing, boosting the supply to meet market demands.

Secondly, the government can implement corresponding policy measures, such as encouraging investors to increase rental housing supply and strengthening the regulation of the rental market to balance the supply and demand relationship. Additionally, promoting the development of shared housing can provide tenants with more opportunities for choice.