Renting a Home in Sydney in 2019
While much of the wider world has experienced a slight decrease to the value of their respective property markets since 2016; Australia (namely Sydney) has reported sale growth in the first two quarters of 2019. Experts have put this down to an influx of sales from owners looking to reap the rewards of their investments – specifically those that purchased properties over 10 years ago when the purchase prices were lower compared to what they are now.
But with the property market in the country on the decline and things expected to worsen until late 2020, what does this mean for renters looking to live in the State and for investors looking for corporate rentals?
What You Need to Know as a Renter
Generally speaking, and when comparing values of rental properties across the board, all sectors have undergone a decrease in rental values since 2016. In the past 12 months, suburban rental properties have seen a drop in value of 1.8% on average – saving roughly $20 per week on the cost of rent.
Industry insiders have surmised that because of the decrease in demand for new homes, sellers are more willing to sell their properties at a reduced amount; paving the way for landlords and investors to snap up cheaper houses, apartments and units. According to research, these properties are being renovated for long term rental availability.
These days, the average Sydney home can sell for just under $700,000 – that’s $100,000 less than in 2017 and $300,000 less than the average cost between 2010 and 2015.
Because of this reduction in value, rental prices are expected to continue falling throughout the end of 2019 and into 2020 – with experts being split on whether a comeback will be made within the property market. Fortunately for renters long term leases can be taken out, with many landlords being keen to secure their investments well into the future.
What Does This Mean?
If reports are anything to go by, renters are now in a position to secure a fair deal on their tenancy agreements – although it is worth noting that contracts should be set to annual renewal to avoid missing out on further drops in rent prices. If you consider an average home near Croydon Park and one that features 3 bedrooms; renters will be pleased to hear that they could secure the property for just $530 per week (a reduction of roughly $80 per calendar month).
For apartments or properties with 2 bedrooms, this price can drop to as low as $450 depending on the street – and as tenancy agreements can be secured for a year in most instances, this can act to safeguard renters and allow them more choice when deciding where to live. If prices increase, this won’t happen immediately and across the board, so it can be possible to find another fairly priced home whilst evaluating options.
If the current trend is anything to go by, 2020 has a 50/50 chance of seeing an increase to values; with most experts leaning toward a further reduction on the horizon.Felicity Heffernan