The Sydney rental market has remained relatively strong despite all of the uncertainties over the last 12 months.
While it was originally predicted that rentals would struggle as restrictions continued and borders were shut, the current Sydney rental market situation has proved otherwise.
Both our experience and current rental stats show that more tenants are leasing vacant rental properties as Australia’s lockdowns ease and people are looking to upgrade.
Here’s what you need to know about the rental property market.
Sydney’s rental vacancy rate
With the continued rise in property prices right across Sydney over the last few months, more people are renting to “wait out” the property prices while they remain at such a record high.
As Australia heads towards a new norm in 2022, it’s expected that there will be a further increase in rental demand, causing the overall rental vacancy rate to fall. Sydney, for instance, has already seen a substantial drop of around 0.2% to 0.3% as the city emerged from lockdowns, hovering around an average of 2.2%.
“We’re proud to say that Upstate’s current vacancy rate is at 0.5%,” says John Hall – Senior Business Development Manager At Upstate Property Group.
2021’s restrictions have also delayed the trade industry, causing more people who bought properties during the year to continue renting for an extended period of time while they wait for their home constructions or renovations to be completed. With that being said, it’s expected that around 8,000 to 10,000 tenants will move out of their rentals in the next 18 months and into their own properties.
Sydney’s rental prices
Rent values in Sydney have been increasing steadily year on year, as housing becomes less affordable and rental demand grows.
Sydney has seen a significant increase in the past quarter as the country records its highest annual rental price surge since 2008, leaving the median rental price at $582 for all dwellings. House rents, in particular, went up at least $50 per week in Sydney’s inner west, eastern suburbs, and also on the northern beaches and north shore.
“Upstate is currently at an all-time high for average asking prices across Sydney’s Northern Beaches, with house values at $1,265 and units at $665 per week,” says John Hall.
The strong rental competition means that tenants are actually offering to pay from $25 to $200 more to try and secure quality homes in good locations.
Competition for Sydney’s Northern Beaches rentals
The Northern Beaches rentals have gone strength to strength in the past 18 months, consistently topping the list for rental increases, and with citywide asking rents for houses hitting a new record.
“We’re seeing this trend firsthand, with 35% of rentals achieving an increase in the advertised price,” says John Hall – Senior Business Development Manager At Upstate Property Group.
Increasing rent value and its impact on tenants
With Sydney’s lower vacancy rate, tenants are currently facing a rise in weekly rent due to the supply shortage.
Competition for rentals is also looming as home values remain beyond the affordability rate – making it harder for aspiring first-home buyers. This is compounded by the impending influx of international students, migrants and expats returning to the country as borders reopen.
2021 proved to be a strong year for us in Upstate
“What a whirlwind year 2021 has been,” says John Hall. “In saying that, our team here at Upstate have achieved some amazing results and helped nurture our landlords through some tricky obstacles through the year.”
Our exceptional property management department, which has over 100 years of experience in the industry, allows us to provide the best advice and solutions for our landlords.
This year, our team conducted over 3,000 open homes and met over 7,000 prospective tenants, not to mention having received almost 19,000 internet enquiries through properties we have listed across the Northern Beaches!
Adding to our list of achievements, we have already leased 650+ properties so far this year. 73 of those properties are recorded just for November – our highest record ever!
“Despite the impacts of the ongoing global pandemic, our predictions for the rental market in 2022 is that it will continue to be strong and see an upward trend as months go by,” says John Hall.
Let’s discuss your rental property needs
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Speak to your local Upstate team today and we’ll show you the possibilities that are earning excellent results. We look forward to chatting with you soon.
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