As we venture into the second quarter of 2024, Sydney’s rental market continues to evolve and change. With rising demand across Sydney and a steady influx of new properties, tenants and landlords alike must navigate this dynamic environment wisely.
Today, let’s delve into the Sydney rental market dynamics over the past three months, offering key insights and tips for property owners.
A Glimpse from Barangaroo
Standing in one of our recently settled properties at One Sydney Harbour, the panorama is nothing short of spectacular. The high-end finishings and breath-taking views are a testament to Sydney’s allure. Beneath the veneer of tranquillity and luxury, the rental market is pulsating with activity, characterised by record-low vacancy rates, soaring rent prices, and an ever-increasing demand fuelled by a growing population.
The Heart of the Matter
But what’s driving this dynamic market? A tight rental supply is the first culprit, aggravated by Reserve Bank rate hikes and a robust surge in overseas migration. These elements have conspired to propel rental prices to unprecedented levels, placing Sydney at the pinnacle of house rental costs nationally, with a striking weekly average of $900.
In this high-demand, low-supply environment, property investors are well-positioned to achieve significant rental yields.
Many of our clients have been able to achieve incredible rental prices with a few examples being:
A grade buildings:
20F/88 Barangaroo Ave Barangaroo – 1 bed, 1 bath – $1,400 per week
3201/81 Harbour St Haymarket – 2 bed, 1 bath, 1 car – $1,200 Per Week
5310/115 Bathurst St Sydney – 2 bed, 2 bath – $1,500 Per Week
3906/115 Bathurst St Sydney – 2 bed, 2 bath – $1,350 Per Week
B grade buildings:
4507/93 Liverpool St Sydney – 1 bed, 1 bath, 1 car – $1,050 Per Week
2603/91 Liverpool St Sydney – 2 bed, 2 bath, 1 car – $1,150 Per Week
C grade buildings:
88/569 George St Sydney – 2 bed, 2 bath, 1 car – $1,000 per week
130/569 George St Sydney – 2 bed, 2 bath, 1 car – $1,050 per week
149/158-166 Day St Sydney – 2 bed, 2 bath, 1 car – $1,050 per week
The Rental Landscape
Sydney remains at the forefront with a median weekly unit rent of $900, which is a 13.9% increase in the past 12 months.
The competitive market has led to bidding wars and upfront rent payments to secure leases.
source realestate.com.au
Sydney’s 2024 Outlook
The demand for housing in Sydney is expected to grow due to population increase, limited supply, and ongoing urban migration.
Tips for Landlords
• Pricing – Conduct Market Research: Stay updated on the latest rental trends to set competitive rates.
• Dynamic Pricing Strategies: Adjust prices based on market conditions to maximise rental income.
• Property Maintenance and Upgrades
• Regular Maintenance: Keep your property in top condition to attract and retain tenants.
• Upgrade When Necessary: Enhance your property’s appeal and value with cost-effective improvements.
• Build Good Relationships: Foster positive relationships with tenants for longer tenancies.
• Screen Tenants Thoroughly: Ensure you select reliable tenants through comprehensive screening.
The Bigger Picture
Sydney’s rental market, while challenging, presents opportunities for proactive landlords and investors to leverage high demand for strategic growth.
Conclusion
From the vantage point of One Sydney Harbour, Sydney’s rental market offers a journey through a complex but navigable landscape. With low vacancy rates, rising rents, and a competitive environment, staying informed and proactive is essential.
Thank you for tuning into this update. The Sydney rental market is a fascinating realm, and I’m here to guide you through its many facets. For further insights or queries, don’t hesitate to reach out.
AUTHOR
Teejay Seo
If you would like an obligation free investment health check please contact
Teejay Seo on 0401 295 604 or email teejay@metrorealty.com.au
