Sydney suburbs where rents are finally falling

Renters can finally take a breath as new figures show prices are finally falling. Experts reveal the days of huge rent hikes could soon be over. SEARCH EVERY SUBURB.

Sydney tenants have finally been given much needed relief after battling the worst rental conditions in a generation, with a quarter of suburbs recording a reduction in average weekly rent over the past three months.

The unexpected turn in market conditions saw landlords slash their rents by up to $150 in some suburbs.

Rents were also put on ice, recording no growth, in an additional quarter of the market, according to PropTrack figures provided exclusively to The Saturday Telegraph.

It was the first prolonged period of widespread rent falls or flattening since international borders were reopened following the end of Covid restrictions in 2022.

Renters Eisha Farrukh and Yatha Jain have recently had a rental increase. New figures show rental prices could finally be softening. Picture: Justin Lloyd.

Experts said a recent reduction in tenant demand, coupled with a boost in rental supply, signalled that the days of spectacular rent price hikes could soon be over.

SQM Research director Louis Christopher said landlords upping their rents by staggering amounts – in some cases, by hundreds of dollars – would no longer be the norm.

“Rents have started to fall a bit in Sydney, which is good for tenants even though there is still a shortage in stock,” he said.

“Tenants have grouped together to share the burden and free up stock, as well as living with parents longer.”

PropTrack analysed advertised rental asking prices across units and houses to determine the median rental price for each suburb.

House rents in Woollahra had the biggest drop across Sydney, with landlords advertising properties at an average of $150 per week lower than three months ago.

The weekly rent falls on houses in Revesby, Cremorne and Freshwater were $125-$138.

Across the unit market, weekly asking rents fell by $125 in Point Piper, while in Jamisontown, Belmore and Pyrmont the fall was about $50.

SQM research revealed that Sydney’s rental vacancy rate – the proportion of all rental stock currently available to lease – had recently eased, albeit from a low base. This had alleviated pressure on rents, SQM noted.

Mr Christopher said landlords still held the power across most of Sydney and deeper, sustained rent reductions were unlikely in the coming months.

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A Revesby property that is now listed with a $140 weekly discount compared to a monht ago.

“There’s been some economic slowdown, with a lot more negotiations and discounting. However the market is still favouring landlords,” he said. “I don’t think they (prices) will ever go back to pre-covid levels.”

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Sarah Elkordi who helps renters secure a property through her business The Rent Fairy said she had noticed the rental market was more stable over the past few months.

“Every week changes, with interest rates not going up it is staying more stable,” she said.

“It’s always chaotic when we get interest rate spikes, rents seem to go excessively higher.”

She noted Sydney prices were still unachievable for a lot of renters.

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Experts say the rental crisis is still prevelant but available rental properties have increased slightly.

“The increase in rent isn’t necessarily what the property is worth too, it’s what owners feel like they want due to interest rates.”

PropTrack economist Cameron Kusher said investor activity was up about 30 per cent, which could be contributing to new stock and reducing pressure on prices.

Sydney’s tenant pool was also getting smaller as more people left the big smoke for cheaper cities and regional areas.

“People could be being pushed out into the regions, people are also leaving NSW for interstate and net migration is slowing down,” he said.

A Paddington united was listed in june 2023 for $950, which in July 2024 was reduced to$895.

He noted that although there were signs that things were easing off, the rental crisis and high prices was still an ongoing issue.

“(It) really speaks to how expensive it is to rent in Sydney, and people can’t afford it.”

Around half of Sydney’s advertised rental houses still saw an increase in price from the previous quarter, on top of already high prices.

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“Rents broadly are still going to rise but at a slower pace,” Mr Kusher added.

Renter Yatha Jain and her housemates have been paying $1250 weekly for their share house in Newtown and are now wanting to negotiate a recent rent increase.

Not all rents had reduced, with a quarter of suburbs still jumping in the last three months Renters Eisha Farrukh (left) and Yatha Jain (right) have recently been hit with a rental increase. Picture: Justin Lloyd.

“The onus right now falls on the renter to negotiate those increases because there are no limits or caps,” Mr Jain said, adding that it didn’t feel like the system supported long-term renters.

“It’s really disappointing it makes me, alongside a lot of young people, look to move away from Sydney, where we could perhaps look at owning property or have a more stable rental market.

“It’s also just really disappointing to see the government not taking enough action on this because they are prioritising landlords.”

Originally published as Sydney suburbs where rents are finally falling