Sydney capsule hotel 'pod' advertised as 'long-term living solution' at $300 a week reveals ridiculous state of rentals in Australia

Listed for $300 per week, the pod-like space in inner city Haymarket is described as a 'unique accommodation solution' for renters searching for a 'cost-effective long-term living' option.

The 'ultra modern' capsule - so small that an adult must crouch inside - is located inside the Space Q Capsule Hotel on George Street.

Images show the capsules are stacked and only arm's length from adjacent 'rooms'.

The space comes with a single and double-bed option, USB charging ports, a TV and a safe to store small personal items, according to the listing.

Renters would have to use communal bathrooms, kitchen, and living spaces and there are lockers to store personal belongings.

While the agent describes the capsule as the 'next generation of fresh, affordable, long-term accommodation', Sydneysiders questioned whether it meets 'minimum standards of living'.

'Calling it an apartment is a bit of a stretch,' one Facebook commenter said.

'These are okay for a night of cheap accommodation ... but it's not very liveable long-term,' another wrote.

After staying in the capsule for just one night, one woman said is it 'definitely not suitable in the long term'.

'The capsule was in a room with 5 other capsules. Also one of the showers in the bathroom didn't work and someone had vomited in the other one,' she said.

PropTrack data reveals Sydney is the most expensive city in Australia to rent, with the median rent climbing by more than $150 per week over the past year.

In March, national vacancy rates dropped to a record low of 0.7 per cent.

BY TESS MCCRACKEN FOR NCA NEWSWIRE