Property management news

The rental market in 2018 has been mixed but predominantly weak. This is partly due to the larger than usual number of newly completed apartments entering the eastern suburbs rental market (a factor that is likely to continue for some time). It is important to recognise and account for this state of affairs when making decisions regarding rental properties.

July was our biggest leasing month of 2018. We rented 20 properties, as compared to a monthly average of 12 properties (and far fewer for several months earlier in the year). While partly a result of more market activity, our success was also due to us pulling out all stops to get the right tenants through the doors of our clients’ properties and to close deals quickly, as well as highly competitive pricing.

The table below provides a snapshot of vacancy rates in 2018. The high point of 2.8% in inner Sydney in June, reducing slightly to 2.7% in July, reflects seasonal trends.  Vacancies should decrease steadily heading into the summer months, especially in our patch of beach-side suburbs, but don’t be surprised if movement is still sticky, with the entry of newly completed apartments continuing to place downward pressure on pricing.

Snapshot of Sydney vacancy rates 2018*

 

Jan 2018

Feb 2018

March 2018

April 2018

May

2018

June

2018

July 2018

Sydney

2.3

2.3

2.2

2.5

2.4

2.7

2.8

Inner (0-10km from CBD)

2.1

1.8

1.9

2.2

2.4

2.8

2.7

Middle (10-25km)

2.9

2.5

2.6

2.9

2.6

3.0

2.9

Outer (>25)

2.2

2.3

2.3

2.5

2.4

2.4

2.7

* REINSW Vacancy Rate Survey, August 2018

  We have one of the most experienced property management teams in the East. If you would like any advice, please contact me.

Leave a Reply

Your email address will not be published.