Rental market shocks with $1100 weekly listing in major city apartment
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If you thought the Sydney rental market couldn’t get any more outrageous, think again!
A so-called 'affordable' apartment in Bondi Junction has just been listed for a jaw-dropping $1100 a week—and yes, you read that right.
Even after a couple of price drops, it’s still going for a cool $1000 per week. For many of us, that’s more than the mortgage repayments on a family home used to be!
Let’s break down what’s on offer: this is a two-bedroom, two-bathroom apartment leased by HomeGround Real Estate Sydney as part of the NSW government’s affordable housing scheme.
To be eligible, a couple can’t earn more than $121,000 combined. If you’re earning the maximum allowed, you’d be forking out a staggering 47 per cent of your income just to keep a roof over your head.
That’s before you’ve even thought about groceries, bills, or the odd cuppa at your local café.
After a report in The Guardian shone a spotlight on the listing, the price quickly dropped from $1100 to $1040 and then to $1000 a week.
According to a HomeGround spokesperson, the reduction was due to 'winter market conditions'—as if a chilly breeze could make a $1000-a-week rent any more palatable!
Renters’ advocate Jordan van den Lamb didn’t mince words, calling the situation 'nuts'.
He pointed out that anyone paying $1000 a week in rent while earning less than the income threshold would be left struggling to afford basic necessities like food, medicine, and utilities.
'The guidelines make affordable housing by definition unaffordable … pretty Orwellian if you think about it,' he said.
Van den Lamb, who’s become a prominent voice on housing issues in Australia, also highlighted a deeper problem: the government is spending billions of taxpayer dollars to subsidise private landlords, all while tying 'affordable' rents to an already sky-high market.
'It’s just not going to work and this is what all the experts have been saying,' he added.
To be fair, HomeGround itself is a non-profit agency with a decent reputation. Van den Lamb was quick to clarify that the real issue lies with the system, not necessarily the agency.
'These are the good ones … I’ve got nothing wrong with them,' he said.
'It’s the private landlord that’s being subsidised by the government and incentivised to do this. That is the problem.'
So, what exactly is 'affordable housing' in NSW? By law, these properties must be rented out at 20 per cent below the market rate. But there’s a loophole: the state government allows 'flexibility in pricing' for moderate-income households.
In practice, this means that so-called affordable rents can still be eye-wateringly high—especially in sought-after suburbs like Bondi Junction.
This story is just the tip of the iceberg when it comes to Australia’s housing woes.
Across the country, rents are soaring, vacancy rates are at record lows, and more and more Aussies are finding themselves priced out of the market.
For seniors, many of whom are on fixed incomes or relying on the Age Pension, the situation is even more dire.
Affordable housing schemes were designed to help those in need, but as this example shows, the definition of 'affordable' has become increasingly stretched.
When nearly half your income goes on rent, there’s little left for life’s other essentials—let alone a few treats or a holiday.
Have you or someone you know struggled with high rents or finding affordable housing? Do you think the government’s current approach is working, or is it time for a shake-up? We’d love to hear your thoughts and experiences—share your story in the comments below.
Read more: Will your rent stay low this year? See how this 'price freeze' can affect Aussies this year!
A so-called 'affordable' apartment in Bondi Junction has just been listed for a jaw-dropping $1100 a week—and yes, you read that right.
Even after a couple of price drops, it’s still going for a cool $1000 per week. For many of us, that’s more than the mortgage repayments on a family home used to be!
Let’s break down what’s on offer: this is a two-bedroom, two-bathroom apartment leased by HomeGround Real Estate Sydney as part of the NSW government’s affordable housing scheme.
To be eligible, a couple can’t earn more than $121,000 combined. If you’re earning the maximum allowed, you’d be forking out a staggering 47 per cent of your income just to keep a roof over your head.
'Affordable' Bondi Junction apartment advertised at $1100 per week, later reduced to $1000 due to market conditions. Credit: Google
That’s before you’ve even thought about groceries, bills, or the odd cuppa at your local café.
After a report in The Guardian shone a spotlight on the listing, the price quickly dropped from $1100 to $1040 and then to $1000 a week.
According to a HomeGround spokesperson, the reduction was due to 'winter market conditions'—as if a chilly breeze could make a $1000-a-week rent any more palatable!
Renters’ advocate Jordan van den Lamb didn’t mince words, calling the situation 'nuts'.
He pointed out that anyone paying $1000 a week in rent while earning less than the income threshold would be left struggling to afford basic necessities like food, medicine, and utilities.
'The guidelines make affordable housing by definition unaffordable … pretty Orwellian if you think about it,' he said.
Van den Lamb, who’s become a prominent voice on housing issues in Australia, also highlighted a deeper problem: the government is spending billions of taxpayer dollars to subsidise private landlords, all while tying 'affordable' rents to an already sky-high market.
'It’s just not going to work and this is what all the experts have been saying,' he added.
To be fair, HomeGround itself is a non-profit agency with a decent reputation. Van den Lamb was quick to clarify that the real issue lies with the system, not necessarily the agency.
'It’s the private landlord that’s being subsidised by the government and incentivised to do this. That is the problem.'
So, what exactly is 'affordable housing' in NSW? By law, these properties must be rented out at 20 per cent below the market rate. But there’s a loophole: the state government allows 'flexibility in pricing' for moderate-income households.
In practice, this means that so-called affordable rents can still be eye-wateringly high—especially in sought-after suburbs like Bondi Junction.
This story is just the tip of the iceberg when it comes to Australia’s housing woes.
For seniors, many of whom are on fixed incomes or relying on the Age Pension, the situation is even more dire.
Affordable housing schemes were designed to help those in need, but as this example shows, the definition of 'affordable' has become increasingly stretched.
When nearly half your income goes on rent, there’s little left for life’s other essentials—let alone a few treats or a holiday.
Read more: Will your rent stay low this year? See how this 'price freeze' can affect Aussies this year!
