Change in the wind for Sydney's rental market

[arashi87]

It's already starting to show up in vacancy rates. "In the last 12 months, the vacancy rate has gone up about 0.7 per cent across metropolitan Sydney," Real Estate Institute of NSW president, Malcolm Gunning, said.

"In different spot areas, you have high vacancy.

"What we are seeing now is the finalisation of a lot of new apartment buildings throughout Sydney: the construction boom is in full swing."

I guess rental has its own cycle as well? when is the last time rental goes down in Sydney?

 

[The Fence]

without even looking at official figures I remember early 2000's as being a time when landlords were offering a week or two free rent or other incentives to attract tenants.

Shoe has been on the other foot for awhile now so it only stands to reason, along with increased supply, that the tenants will have the upper hand once again.

Rinse and repeat in a few years time.

 

[miss green eyes]

landlords need to be realistic.
I've seen ads put up for a month now at the same price. Realistically speaking, the LL should reduce their prices. These landlords are refusing to face reality that their rents need to be cut steeply.
Alot of older blocks are trying to offer more bang for their buck by renovating to completely new standards. However, I guess they are still unable to compete with brand new OTPs in that regard.

 

[TMNT]

im surprised vacancy rates havent shot up due to the huge demand in investors buying properties.

vacancies rise in every other major city when investors start flooding the market

 

[miss green eyes]

Just hope it wont escalate to the point where landlords just cannot rent out their properties at all.

 

[Scott No Mates]

im surprised vacancy rates havent shot up due to the huge demand in investors buying properties.

vacancies rise in every other major city when investors start flooding the market

I'm surprised that we haven't seen a huge spike in the number of members or visits to the SS website.

Sim, any stats?

 

[see_change]

Just hope it wont escalate to the point where landlords just cannot rent out their properties at all.

That's one of the biggest fears that stops some people investing in property .

Depends on what and where you buy .

You either buy something people really want to live in, or you drop the rent .

Cliff

 

[twobobsworth]

Had two for lease in Quakers Hill two weeks ago. Both received multiple applications offering either significant rent in advance or over asking. Ended up getting $25pw more on one, $10pw on the other.

 

[LeoT]

Had two for lease in Quakers Hill two weeks ago. Both received multiple applications offering either significant rent in advance or over asking. Ended up getting $25pw more on one, $10pw on the other.

That's fantastic mate.

I am renting a 3 bed house in QH, renovated, 1 level. I am renting it for 410 a week and I know its under-rented now so when the lease comes up I am thinking at least 440. what's your opinion?

Thanks

 

[miss green eyes]

Depends on what and where you buy .

You either buy something people really want to live in, or you drop the rent .

Cliff

The problem is, there are alot of very decent properties now on the market that just cannot be rented out due to oversupply. They've been vacant for over a month and counting.
Plenty of decent 2-bedders.
If you can afford it, buy a 2 bedder in say, the Sydney CBD and rent it out for waaay below the market rate. Then of course it will rent out. But that's not a strategy most landlords can afford to adopt.

 

[twobobsworth]

That's fantastic mate.

I am renting a 3 bed house in QH, renovated, 1 level. I am renting it for 410 a week and I know its under-rented now so when the lease comes up I am thinking at least 440. what's your opinion?

Thanks

There's not much available so yes an increase should be on the cards regardless if on the "new" side or old. 4 bedders are more popular in houses though.