Declining demand and increasing supply lead to higher vacancies in Sydney, but it remains the most expensive rental market
Sydney's downward slide shows no sign of stopping, but if prices continue to fall, the capital's rental market is in a rather interesting position.
According to CoreLogic's quarterly rent report for March 2019, Sydney remains the most expensive rental market in the capital, despite recent declines in rents. The median rent per week is $ 582, $ 32 more than Canberra's second place.
The report recognizes the mixed nature of the rental market. However, with Sydney accounting for such a large percentage of combined capital leasing, its decline has reduced overall performance in Australia. The report explains that Sydney, like Melbourne, is seeing the impact of strong investor demand in recent years and the corresponding increase in the supply of apartments, much of which has been purchased by investors.
The report on the residential vacancy rate published by the New South Wales Real Estate Institute (REINSW) in March 2019 confirms these findings, noting that vacancy rates have increased in the subway and in outlying areas.
"The vacancy rate in Sydney's inner ring – areas such as Ashfield, Leichardt and Marrickville – increased in March due to declining demand and significant supply," said Leanne Pilkington , President of REINSW.
"Sydney's outer ring is also in a similar situation. Real estate agencies in areas such as Baulkham Hills and Blacktown have indicated that older dated units are more difficult to rent at the same price as before and that homeowners refuse to lower rental prices. "
In contrast, business seems to be picking up in central pockets, where homeowners are more open to trading.
"The central ring of Sydney is experiencing a decline in the number of vacant dwellings. According to real estate agencies located in areas such as Strathfield and Parramatta, homeowners are willing to reduce rents to attract tenants, "says Pilkington.
Job Creation on the Outskirts of Sydney
There will certainly be no shortage of tenants, the available job opportunities being on the outskirts of the metro.
"Automated trains on the modernized train line to Bankstown will reduce congestion and travel time to the central business district, which will lead to a boom in the region. The line could also be extended to Liverpool in the future, "said Rich Harvey, CEO of the building, real estate owner.
"This will be supported by the redevelopment of the Bankstown Airport, which will create 2,000 jobs once completed."
SUBURB TO MONITOR
JINDABYNE: Gateway to the ski slopes
Nestled in the Snowy Mountains, the suburb of Jindabyne is an exciting tourist destination all year round. Visitors come here for outdoor activities ranging from skiing and snowboarding in winter to horse riding and mountain biking in the summer.
However, its popularity does not only affect vacationers: the value of real estate has been rising for about a decade and continues to climb. In the five years to March 2019, house prices rose 83.7% to a median of just under $ 600,000. Over the same period, unit values ​​jumped 67.2%, but the market remains quite affordable, with a median of less than $ 350,000. The rental yields of the units are solid at an average of 5.3%.
Tourism: Jindabyne is the refuge of vacationers summer and winter
Affordability: The median unit price in Jindabyne is $ 334,032 relatively low
Top suburbs:
Dulwich Hill
,
collingwood
,
Tuart Hill
,
trott park
,
Newcastle
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