Sydney suburbs where rental demand is set to soar over Summer

Sydneysiders seeking rentals are in for long, hot and uncomfortable line-ups over summer with some areas tipped to be the worst for renters over the next 3 months.

The most in-demand suburbs for renters this summer have been revealed. Picture: Adam Yip

Sydneysiders seeking rentals are in for long, hot and uncomfortable line-ups over summer.

It comes as 10 Sydney suburbs have been tipped for huge demand from renters over the next three months.

Exclusive PropTrack data has revealed the suburbs with the largest increase in demand over the past two summers, based on views per rental listing on realestate.com.au, with southwest Sydney, Parramatta and the inner west topping the list.

The southwest suburb of Wiley Park recorded a massive 167 per cent rise in viewings over the past two summers.

Rental demand across southwest Sydney, Parramatta and the inner west is set to soar over summer. Picture: Jeremy Piper

MORE

‘Jaw-droppingly beautiful’: Australia’s 20 best pools

Kyle Sandilands’ big plans for $14m Vaucluse home

This was followed by the inner west suburb of Ashfield where demand also more than doubled along with other southwest suburbs of East Hills, Allawah, Lakemba and Campsie.

The Parramatta region’s Carramar, Harris Park and Silverwater also made the top 10.

PropTrack senior economist Angus Moore said the rental market had gone from relatively soft to very tight.

“If we cast our minds back to the summer of 20/21, we had soft rental markets at the time and there was more supply available,” he said.

“Now we are seeing tight rental markets right across Sydney. The southwest, inner west and Parramatta belts have seen a big jump in the rental market in line with the rest of Sydney.”

Ray White Bankstown director Tony Roumanous put the growth in demand across southwest Sydney down to affordability and demographics across the southwest.

According to PropTrack, the median weekly rent in Wiley Park is $450 for units and $650 for homes.

A one-bedroom unit on King Georges Rd in Wiley Park is listed for $420 per week.

A two-bedroom unit in Orpington St, Ashfield is listed for $600 a week.

“The affordability is a major factor but it all comes back to supply and demand,” he said.

“We recently rented a three bedroom unit for more than $500 per week. Normally it would take 2-3 weeks to be rented but we are turning them over a lot quicker.”

He said the suburbs of Wiley Park and Lakemba had “very little major new developments” with the old style red brick units providing affordable options.

“There’s huge demand, a lot of people want to live in the area due to schools and churches,” he said. “Lakemba and Wiley Park are also areas where people migrate to be closer to family.

“We’ve seen rents rise, going from the low $400s to high $400s and $500s.”

He said growth in rents of up to $100 more per week had resulted in many people living week to week.

Mr Moore said vacancy rates were contributing to the ongoing demand.

Vacancy rates across Sydney are at 1.1 per cent. Picture: Adam Yip

MORE

Hemmes plans next big move with $6.8m Woolworths buy

‘Not slowing down’: Sydney’s unstoppable year of huge sales

“Vacancy rates across Sydney were just below 2.5 per cent at the end of 2021 and by the end of 2022 they were sitting around 1.5 per cent,” he said.

“As we head into summer we have a vacancy rate of 1.1 per cent which is extremely tight.

“We’re also seeing rents grow across all parts of Sydney.”

He said while December was a quiet time for the rental market, things usually heat up in January as people look to move on and have a fresh start.

He said the tightest market was currently on the northern beaches.

“We are really splitting hairs, it’s pretty much tight across all of Sydney and even in the Hills areas with a vacancy rate of 1.5 per cent.

“We are seeing rentals lease very quickly at the moment. Across Sydney properties are leasing in about 20 days which is down from about 30 pre-pandemic. It underscores the need to be organised and move quickly.”

Experts from Finder’s RBA Cash Rate Survey have predicted rental prices to increase throughout Australia through to the end of 2024.

Finder’s head of consumer research Graham Cooke said their Consumer Sentiment Tracker showed that 42 per cent of renters were currently struggling to pay their rent.

“Much of the conversation around rate rises focuses on homeowners, but it’s actually renters who are feeling the bigger impact as the deal with flow-on rent increases and opportunistic landlords,” he said. “Further rent increases won’t be welcome news for those struggling.”

Originally published as Sydney suburbs where rental demand is set to soar over Summer