Livin’ on a prayer: Sydney’s insane rental market

Sydney’s rental crisis was on full display on Saturday morning with close to a 100 desperate renters queuing around the block for an apartment above a Surry Hills pub.

Desperate renters have been hit with a perfect storm of fierce competition and low property availability to open 2024, dashing any hope of an early reprieve to Sydney’s rental crisis.

Real estate experts say prospective renters are out in force earlier than in previous years, with lines to view properties topping more than 100 people in certain in-demand suburbs.

That was the case yesterday on Cooper St, Surry Hills, where The Sunday Telegraph counted more than 100 people queuing up to view one of two apartments – a two-bedroom unit advertised for $975, and another for $875 – in a block above a pub.

Student Rania Raiqa was one of those in line and has been searching so long she feels she has one card left to play to secure a home.

“I was thinking about bidding a higher amount, but the agent said it was first come first served,” said the 22-year-old student who has been looking for a property for weeks. “So I think I’m going to have to start praying to God.”

Trang Le and Rania Raiqa lining up for an opportunity to inspect a Surry Hills unit. Picture: Sam Ruttyn

Real estate experts say it is a carry over from December, when rental availability was at near record lows.

Now add the factor that determined renters are hitting the hustings earlier in an attempt to secure a home and it adds up to the perfect storm of long lines and fierce competition for properties.

Almost 100 people queue to inspect two apartments for rent above a Surry Hill pub on January 27, 2024. Picture: Jo Seymour,

“This was (the Cooper St) property’s first inspection and we weren’t expecting the size of the crowd that came, usually things only get busy after the long weekend,” Wiesner Property principal Jeremy Wiesner said.

“Since we reopened for the new year on January 8, it’s been crazy busy,” Mr Wiesner said. “I think towards the end of last year there was not as much available but now there are some good properties available and people are trying to jump on them quickly.”

PropTrack economist Cameron Kusher said demand for rentals was traditionally high in January but had been made worse by a number of factors.

“Tough conditions are likely resulting in renters preferring to stay where they are, despite rent price increases, rather than battle for a new rental,” Mr Kusher said.

“Demand is historically strong (in January) because the number of available rentals is low,” he said. “Household sizes have reduced and migration is historically high, creating more competition for the little stock available.”

Long lines at the rental inspection for a unit above the Evening Star Hotel in Surry Hills. Picture: Sam Ruttyn

The 100-odd queue started inside the building and stretched outside and down the footpath in both directions. Picture: Sam Ruttyn

The bad news is the squeeze is set to continue. “Sydney’s rental market will continue to surge this year due to changing lifestyles, remote work trends, and population growth,” eXp Australia real estate agent Peter Fragakis said.

It’s the grim reality faced by people like Ms Raiqa who has upped her budget in the hope of securing a property.

“I was looking at $800 per week for a two-bedroom, now it’s up to $1000,” she said.

Ms Raiqa’s friend, Trang Le, 20, joined her for support.

Ms Le recently secured her own apartment after countless knock-backs where she viewed about 20 properties.

“You just have to be resilient and keep looking,” she said.

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Long lines at the rental inspection for a unit above the Evening Star Hotel in Surry Hills. Picture: Sam Ruttyn

Originally published as Livin’ on a prayer: Sydney’s insane rental market