Sydney Rents are Coming Down ... or are they?
Opportunities to find cheaper homes to rent in Sydney
We’re hearing a lot of talk about rents coming down in Sydney, and this is prompting people to either seek rent reductions from their landlords, or else move:
To a more expensive area that may now be affordable
To a larger home for the same rent
Out of home for the first time
In with friends for the first time
To live alone for the first time
and so on.
But is it true?
Yes, rents are coming down in some parts of Sydney
Sydney is really made up of many different markets. It is not one market. So we can’t really generalise and say that rents are coming down in all of Sydney - because they aren’t. Some areas have fallen a lot, whereas other areas have only fallen a little.
Vacancy rates have increased in areas that used to have:
Backpackers
AirBNB / short-term let homes
University students (particularly overseas students)
People from industries that have been most impacted by COVID: hospitality, arts etc
High-end properties that are no longer affordable
CBD locations where people may fly in and fly out for work
In areas that are least affected by the above factors, rental vacancy rates are actually fairly stable - they have risen slightly, but not by the 15%+ that we are seeing in other parts of Sydney
In many parts of Sydney, rents have come down by measures of between 5% and 15%. Other areas have not seen a change at all.
Is it a good time to move and take advantage of lower rents?
Possibly, yes.
Things to factor in:
The cost of moving
The cost of breaking your lease, if applicable
For many people, it’s a great time to move to a completely different area, perhaps:
Closer to the city / beaches
Further out in a larger home
Closer to work
Further from work (if you’re WFM) where you can enjoy a better standard / quality of housing
I have noticed a dramatic increase in enquiries from people who would like to move, but are unsure where in Sydney to move to that will give a better quality of life for the same or cheaper rent. If you’re thinking through options, get in touch and I’d love to help you.