Median house rents in Sydney’s Oakville could drop by 35 per cent by the end of the September, while units in Barangaroo are on track to slump by 27 per cent, a new report shows.
Suburbtrends.com is also forecasting median house rents in Hyde Park in Adelaide to drop by 22 per cent while Botany is expected to fall by 21 per cent.
Unit markets across many areas are also facing significant rental decline, with Sydney’s inner suburb, Millers Point, expected to slide by 18 per cent.
…Suburbtrends.com director Kent Lardner says the data suggest rental markets are yet to see real price adjustments, but with the end of the eviction moratorium and government support, suburbs with high vacancy rates could experience significant falls in rent.
That is, before the fiscal cliff, rent moratorium end, bank forced sales, return of bankruptcy laws and still more supply to come.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
