Welcome to our sizzling End of Financial Year update! While Sydney’s median rents have risen by 9%, not all areas follow the same trend, with some suburbs still below their 2023 peaks and others experiencing remarkable growth.
In May this year, we saw Australia-wide rents staying steady with an 8.5% annual increase for the fourth month in a row. But if we look closer, there’s been a boost in regional rents, which have jumped to 6.9% from a low of 3.7% back in September 2023. On the flip side, rent growth in our capital cities has slowed a bit, now sitting at 9.1%, down from 10.6% in April 2023.
Sydney’s inner-city rental market consistently experiences tight conditions, with vacancy rates typically much lower than the national average. This March, our agency observed a significant demand for rentals alongside a shortage of available properties, resulting in historically low vacancy rates. Currently, our property management team is observing the opposite trend, likely attributable to the winter season.
Even though Sydney as a whole saw a 9% increase in median rents, some areas like Canterbury, Pennant Hills, Epping, and Parramatta are still below their 2023 peaks. However, other suburbs like Campbelltown are seeing huge growth, with rents up by 13.4% respectively.
For this financial year, Village Property has done well, with an average vacancy rate of 1.39%, just below the industry average of 1.5%. Our Leasing Manager, Kate Zhang, says, “The rental market has had a very strong start to the year with low vacancy and great rental increases. However, we have noticed more properties come to the rental market with fewer applicants over the last 6 weeks. This feels like a seasonal blip, and we are hoping as we get through the winter months, the rental market will strengthen once again for a strong finish to complete 2024”.
Village Property Snapshot EOFY23
Properties Leased……………………………………………………………………… 638
Open Homes………………………………………………………………………….. 2,350
Tenants Inspected………………………………………………………………. 12,544
Days On Market………………………………………………………………… 20 days
Average Rental Price……………………………………………………….. $848.00
Village Property’s Vacancy Rate……………………………………….1.39%
REINSW Average Vacancy Rate………………………………………….1.5%
In their latest meeting, the Reserve Bank of Australia (RBA) kept the cash rate steady at 4.35%.
Click here for details Statement by the Reserve Bank Board: Monetary Policy Decision | Media Releases | RBA.
Thank you for your continued support. We’ll bring you further news and market updates in the next quarterly review.
