‘Glimmer of hope’: rents fall across two thirds of Sydney
Rents have begun to drop across much of Sydney, with landlords slashing hundreds off rents in some areas because of recent market changes.
Rents have begun to fall or freeze across almost two thirds of Sydney amid a raft of landlord reforms, with experts heralding the price changes as a sign that the worst of the rental crisis could be over.
The latest reforms included the NSW parliament passing a bill to end no-grounds evictions on Thursday, which came on the back of new rules that will limit rent increases to once every 12 months.
These changes have coincided with a shift in rental market conditions that helped slow the pace of once unrelenting rental increases, with rents in some areas even going backwards.
Exclusive PropTrack data revealed rents dropped or stagnated in around 60 per cent of Sydney’s 788 suburbs with available data over the past quarter.
MORE: Huge win for renters: NSW tenants bill passes parliament
MORE: ‘Disgusting’ problem with NSW rental reforms
PropTrack economist Eleanor Creagh attributed the market slowdown to more rental homes becoming available and tenant demand dropping as more renters moved to share houses or back in with their parents to save money. Migration has also waned in recent months.
“Demand and supply are working together to see a stabilisation in rental market conditions. That’s good news for renters,” Ms Creagh said.
The biggest rental price drops in metro Sydney over the quarter were in North Willoughby and North Balgowlah, where houses were renting for $200 less per week.
MORE: Surprise reason banks are gifting Aussies $4000
This was followed by rentals in Beaconsfield in Inner Sydney, Cremorne in North Sydney and Forresters Beach on The Central Coast dropping by as much as 15 per cent, between $100-$175 less per week.
SEE HOW RENTS HAVE CHANGED IN YOUR SUBURB HERE.
In rural NSW, the Illawarra region had some of the sharpest declines over the quarter, units in Bellambi had dropped almost 23 per cent, while both units and houses had dropped in Corrimal by up to 15 per cent.
Ms Creagh said renters were still going to be challenged, despite the recent glimmer of hope.
“Rental affordability has deteriorated significantly, there are some suburbs that have seen significant price growth over the past year and it’s still been incredibly strong across the board,” she said.
MORE: Extreme steps buyers are taking to get homes
Home where Matthew Perry found dead sells for millions
Rents in the Northern Beaches suburbs of Balgowlah Heights and Bilgola Plateau had huge prices lifts over $263-$300 in the past quarter.
“When we look at the rental market at the moment it really highlights that not enough is being done in terms of improving housing affordability, improving supply and rental availability to ensure sustainable conditions in the housing market,” Ms Creagh said.
NSW tenants union CEO Leo Patterson Ross said the passing of the Residential Tenancies Amendment Bill 2024 this was a “historic win for renters.” The measure will outlaw no grounds evictions.
“Millions of renters have felt the impact of no grounds evictions in their lives … this is the single most significant change we can make to residential tenancies law,” he said, adding that affordability was still a problem.
Many Sydney-siders unable to purchase homes to live in have turned to ‘rent-vesting,’ continuing to rent in their desired area, but investing in a cheaper housing market.
James Kirkland, executive general manager of sales at Little Real Estate, said the trend has ramped up because many renters cannot afford homes in the areas they live in and remain trapped in the rental market.
“What we are seeing is younger people, who otherwise in different circumstances would be purchasing to be an owner-occupier, that not being an option for the areas they want to live and reside in,” he said. “This is another way they can get on the property ladder and take that first step.”
Both Sarah Danskin, 27, and her housemate have turned to rentvesting as neither could afford properties in Sydney. Ms Danskin rents in Mortdale and owns a home in Townsville, bought for $550,000.
Finding their Mortdale home was challenging but not as gruelling as they expected, Ms Danskin said. One of their biggest issues was finding something in good condition.
“I think of the standard of the apartments compared to the price we wanted … I went to an inspection where they wanted $580 a week and the toilet was broken, the roof was caving in.”
MORE: Extreme steps buyers are taking to get homes
Why NSW homes will cost $12k extra for a month
Originally published as ‘Glimmer of hope’: rents fall across two thirds of Sydney