There’s always speculation and predictions about the potential impact of highrise apartments hitting the Sydney marketplace over the next 2-3 years.
So I am going to put in my 2 cents worth about the Sydney rental market and what may occur in the very near future.
Rents so far throughout 2016 have been rising but are beginning to stabilise.
It’s extremely important to understand this and take this into consideration when assessing the market rental potential of your property. Especially those with brand new apartments hitting the marketplace, the pace at which rents may have previously increased, it is stabilising.
It’s vital to be realistic and put things into perspective. Vacancy rates have risen from 2% to roughly 3% across Sydney as a whole and whilst rentals have been so strong for a number of years now, unfortunately, the realist within me suggests that this can’t last forever.
This doesn’t mean doom and gloom and that rents will drop off, but it’s important to recognise the importance of leasing an apartment for a little less and knowing when to secure a quality tenant when you have to, versus having an apartment sitting vacant because you are seeking an unrealistic rent when there are similar, competing properties available, especially, during the launch of a new building.
I can’t stress the importance of securing a quality tenant and having a property rented rather than chasing unrealistic numbers.
New apartments are securing excellent results, whereas older properties which traditionally performed well need to lift their game in order to compete .i.e. a lick of paint, updated interiors.
So in summation, there is no need to panic, the population of New South Wales is continuing to grow with the Department of Planning projecting an increase of over 100,000 on average each year for the next 10-15 years.
That population growth will continue to stimulate economic growth and the demand for housing across Sydney, which represents very solid demand into the future for rental properties across the Sydney metropolitan area.