If you’ve leased your property (through an experienced agent) over the past couple of years in Sydney, chances are you’ve enjoyed the upper hand of the market; multiple applications and offers, rents steadily climbing, and possibly your investment being snapped up in days.
But as every seasoned landlord knows, markets are not static – and a recent shift in Sydney rental vacancies could be signalling the start of a new phase, and potentially the end of the rental crisis.
So where is the market at?
Recent SQM data shows that Sydney’s vacancy rate climbed to 1.8% in November last year, which marks a significant change from years of historically low vacancies.
And while vacancies have been trending upward, rental prices have too, on average; CoreLogic data reported in December 2024 indicated that house rates in Edmondson Park went up $56 per week, and $35 per week for units – while in Campbelltown, house prices increased $52 per week, and $41 for units.
What does this mean for landlords?
It’s no doubt that consistently high rents over the past few years have forced many tenants to rethink and potentially compromise on their living arrangements.
With some having to downgrade to smaller properties, seek more affordable suburbs or consider sharing their space with other occupants, the data is certainly a sign that Sydney renters are finding more cost-effective solutions – and the impact could be opening up more vacancies (and therefore more options, and better leverage) for other renters in the market.
For landlords, especially those with an empty or soon-to-be vacant property, rising vacancy rates highlight a need to go beyond simply setting competitive prices. The ease in demand, evidenced both by the data as well as fewer people at open homes, is most likely correlating with greater availability – in a market where affordability is clearly a key factor for tenants.
Ensuring that your investment property is not only competitively priced, but also up-to-date with smart upgrades (think air conditioning for summer), and offers flexible lease options, could see you avoiding vacancy entirely – a proactive approach that our experienced agents can assist with.
If you’re after the right tenant, look no further than our team!
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
