Let’s Rent Monthly Property Management Update – October 2020
Open inspections have been a mixed bag with a townhouse in Maroubra showing strong interest from renters. Good quality properties are also renting well with a three bedroom terrace house with garage in Paddington renting at $1,600 per week one day after settlement with the lease commencing 3 days later. We are seeing Australians returning home and this is adding to demand in some suburbs and price ranges, mostly high end.
Rents close to the city continue to be those most under pressure below $1,000 per week. I’ve set out a vacancy rate snapshot below from SQM Research’s data with September 20 versus February 20.
Alexandria 5.6% vs 2.9%
Rosebery 5.6% vs 2.8%
Balmain 2.8% vs 1.6%
Paddington 4.6% vs 2.1%
Neutral Bay 4.9% vs 3.1%
Pymble 5.6% vs 5.3%
Cronulla 1.6% vs 2.3%
Manly 1.5% vs 2.1%
Newport 0.8% vs 2.8%
This tells the story of people moving away from the centre of the city to beach suburbs like Manly, Newport and Cronulla with those suburbs with an oversupply of new stock having been hardest hit.
Our vacancy rate is edging lower again which we are super pleased about however we are still experiencing much higher vacancy than a year ago. Our vacancy rate came in at 2.3% compared to 3.6% in September. On the other hand the REI vacancy rate climbed to 5.5% in September compared to 4.7% in August.
We are hopeful that New Zealanders and Australians returning home will help soak up stock in inner Sydney suburbs.
Six month average: 3.2%
REI Vacancy Rate Inner Sydney
Six month average: 5.9%