Sydney rents suffer biggest fall in 15 years

Domain has released its June quarter rental report, which reveals that Sydney rents have experienced their sharpest fall in 15 years, down by 1.9% over the quarter and by 3.6% over the year:

The rental declines were fairly broad-based:

According to Domain:

“Record rates of construction has been flowing through to rents for a while and you can see that through the vacancy rate,” Mr Wiltshire said. Sydney’s vacancy rate is 3.2 per cent, compared to 2.4 per cent a year ago [Domain economist Trent Wiltshire said]”…

The Agency national director of property management Maria Carlino said Sydney’s huge construction pipeline had finally had an impact.

“It’s definitely a tenants’ market, they haven’t been silly in relation to offers,” Ms Carlino said. “They’ll come in with [an offer] 10 per cent cheaper and negotiate from there.”

CoreLogic’s rental data also shows Sydney’s rents falling over both the quarter and year:

The situation may be turning, however, with both dwelling approvals and commencements plummeting at the same time as population growth is increasing:

Other things equal, this points to tightening rental vacancies in 2020.

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