Western Sydney Slow Rental Market?

[DaveM]

I dont have anything vacant currently but am out hunting for another purchase, and I am surprised at not only the lack of people at open homes, but at the time on market for rental properties in suburbs where its usually busy.

I have looked at some places in streets and complexes around 2770 where there have been rentals listed since November last year at a reasonable rent that are vacant still.

I have been talking to my PM for a place in St Marys regarding terminating vs keeping a somewhat problem tenant, she advised that the area in general is very slow to let empty properties with little turnout to open for inspections. They are starting to get vacancies from people who cant afford the rent after job layoffs and are moving back in with family leaving empty stock behind. There are currently 4 pages of "for rent" on realestate.com.au for St Marys.

This is the general feedback I am also getting from sales agents about rental potential, they are between the lines saying it may take a month or more in the current market as people just arent moving house.

Anyone finding the rental market sluggish?

 

[Shahin_Afarin]

Is this everything or something specific like units, houses, etc?

Regards

Shahin

 

[skater]

Anyone finding the rental market sluggish?

LOL! I'm about to find out. I'm just finishing off fixing up after an eviction. House should go back on the rental market next week, but it's an unusual house, so not sure if that will make a difference. It's 4 beds but faces the laneway. The garage is not included and is fenced separately.

Normally I'd put the rent up after getting rid of tenants and fixing it up, but decided to set the rent at the same level because my PM has a lot of stock on the market at the moment. Mind you, they are all 3 bedders, so mine might be easier to rent.

 

[DaveM]

Is this everything or something specific like units, houses, etc?

Regards

Shahin

Seems to be both... townhouses, villas, houses. Renovated not dumps, eg 3br places around Shalvey/Emerton/Willmot etc that would have rented at 320pw a year ago are dropping and dropping, some renovated 3 bedders are down to 280pw.

A townhouse complex I saw last year where 3 bedders were leased in a flash at 350pw are now struggling to get 300pw.

 

[Shahin_Afarin]

wow interesting - prices have gone up and rentals going down.

Regards

Shahin

 

[DaveM]

wow interesting - prices have gone up and rentals going down.

Regards

Shahin

Prices havent really moved a lot either... I have an offer in on a place thats just a final straw break away from the vendor accepting, it sold for $30k more than my offer 3 years ago.

 

[Shahin_Afarin]

Where Dave? 2770?

Regards

Shahin

 

[datto]

CPI data released today showed very low inflation. Rents were mentioned as contributing to the low figure. Hope we don't experience stagflation.

 

[nhg]

I've been hearing market has slowed down from back in November.

Thinking of kicking one tenant out too.

Tho in saying that I had 2 houses on market in dec. Rented out above average rent in St Marys before house even settled. Still have the numbers of half a dozen acceptable tenants asking me to call if anything comes up.

I advertised myself on gumtree then directed them to my agent. I guess just be proactive.

 

[priscilla]

We have found the rental market in Western Sydney (Parramatta/Blacktown areas) was quite slow all last year there were fewer viewers and fewer quality applicants with more properties to choose from. High quality tenants were snapped up quickly as they often had applications on more than one property.

So far this year the market has been a little bit better most properties we have had have rented fairly quickly with a couple of exceptions. Most properties in the last 6 months or so have rented at the same rent or slight increases - but $10 per week can make the difference between a new tenant and extended vacancy periods. Very fickle market.

 

[Jacque]

Perhaps it's the large no. of investors creating an imbalance in the home ownership vs rental supply market? If properties aren't as scarce, healthy competition eventually forces rents down.

 

[skater]

Perhaps it's the large no. of investors creating an imbalance in the home ownership vs rental supply market? If properties aren't as scarce, healthy competition eventually forces rents down.

Yes, around 2003 or thereabouts, we had to reduce rent on a few, but they bounce back up again, so it's all good.

 

[beachgurl]

Around here they are going like hotcakes! I've been trying for two weeks now to secure a decent rental in Pemulwuy/Greystanes/Pendle Hill/Wenty/Woodpark/Guildford and every application I make I miss out due to so many applicants. The open houses are just nuts too, even mid-week. There is a bit of stock on the market but it is really substandard. I'm about to place an application for the best of a bad bunch but at the 6 month mark (if i get this place) I'll be hanging out to find something better.

I ventured out to Blacktown (close to the highway end) and Wetherill Park and the numbers at the opens were just as big there too.

 

[thepeoplesagent]

Perhaps it's the large no. of investors creating an imbalance in the home ownership vs rental supply market? If properties aren't as scarce, healthy competition eventually forces rents down.

Very true. Since the first homes buyers grant and stamp duty exemption have been scraped we have seen first home buyers dwindle only to be replaced by investors. More homes for rent= less demand.

 

[DaveM]

An agent I spoke with yesterday around the Penrith area said they have 15 properties vacant in the suburb which is almost an all time record. They also had 3 rental open houses on Wednesday without anyone turning up.

FHB missing is apparent... I have been to open houses for sale for well priced entry level stuff adn I have been the only person there for the half hour open.

 

[mumbai]

Around here they are going like hotcakes! I've been trying for two weeks now to secure a decent rental in Pemulwuy/Greystanes/Pendle Hill/Wenty/Woodpark/Guildford and every application I make I miss out due to so many applicants. The open houses are just nuts too, even mid-week. There is a bit of stock on the market but it is really substandard. I'm about to place an application for the best of a bad bunch but at the 6 month mark (if i get this place) I'll be hanging out to find something better.

I ventured out to Blacktown (close to the highway end) and Wetherill Park and the numbers at the opens were just as big there too.

I will let you know, if I lease my PPOR in Pendle Hill in six months time

 

[virgo]

Open houses

Too many granny flats?

 

[thepeoplesagent]

Interest rates also influence the rental market. Interest rates go up, vacancy rates go down. And vise-versa. I’m seeing some tenants leaving the rental market to purchase whilst interest rates are low.

 

[devank]

Interest rates also influence the rental market. Interest rates go up, vacancy rates go down. And vise-versa. I’m seeing some tenants leaving the rental market to purchase whilst interest rates are low.

True. St Marys has good rental yield. It could mean as interest rates come down buying would be better than renting!

We have a house and a GF in Pendle Hill. Both were rented within a week for $480 & $350. So I don't think it is a problem in this suburb.

 

[priscilla]

Too many granny flats?

This is very true, many of the homes which are hard to lease and have longer vacancy periods also have graany flats in the back yard....most tenants don't like the thought of such a lack of privacy or the thought of sharing driveways/yards etc.