SALES
We’ve had a strong performing February with consistent buyer activity, connecting ten buyers with their new home, while Wentworth Point recorded more than double the amount of its January sales.
- With 31 homes unconditionally sold in the area this month, we exchanged nine locally and observed enquiry and attendance figures relatively on par with this time last year:
- Market trends we’re observing include a decrease in stock levels which dropped 5.3% locally this month, along with the median price which is down 1.84%, shifting from $713,800 to $700,600.
- We continue to maintain a very low average of 33 days on market which is half the average time Wentworth Point properties are spending on the market (66).
- The latest SQM research shows rental prices continue to surge, with the average weekly rent for a Sydney property 3.3% higher this month, and 31.8% more than it was 12 months ago. The significant increase is offsetting additional costs incurred by investors as a result of rising interest rates, and has influenced owner and tenant activity - compelling some owners to rent out their property rather than sell, and sparking renewed interest from some tenants deciding to fast track their buying plans.
- With the NSW election to take place next month, the Coalition has promised to expand NSW stamp duty reforms if re-elected. This means home buyers will have the option to pay a lower, annual land tax rather than the upfront cost of stamp duty, with the $1.5 million cap increasing by $50,000 from 2023-24. This proposal is welcome news for buyers in the market for an apartment who will benefit most, with these types of dwellings commanding less land value.
Homes continue to sell, and buyers are showing the highest levels of engagement with well priced and well presented properties. These are critical aspects of any sales campaign, helping to foster that emotional connection that separates a mere property from a home.
Review the full Wentworth Point report here.
RENTALS
Overall, the rental market in the area remains highly competitive, with enduring demand for rental properties that is continuing to push prices upward.
Wentworth Point
A total of 148 properties were converted to leased in Wentworth Point this month, marking a substantial 17% increase since January. We linked 31 tenants with their new Wentworth Point rental, retaining 19% market share and our #1 ranking in the area.
Our Wentworth Point rentals spent an average of 9.5 days on market, a figure significantly lower than the suburb average of 34 days, demonstrating both competitive demand in our local area, and our efficiency in connecting the right tenants to the right homes.
When it comes to price ranges for rentals in Wentworth Point, there are currently 30 one bedroom apartments available with weekly rents ranging from $530 to $660. There are 35 two bedroom apartments starting from $610 up to $900 per week, and five three bedroom apartments within the $850 to $1,050 range.
Wider Sydney
Overall throughout February, we leased a total of 46 properties across Sydney, representing a 5% increase month-on-month, but an 11% decrease year-on-year.
The highest rental price we achieved was $1,100 per week for a three bedroom apartment in Wentworth Point, followed by $1,050 per week for a two bedroom apartment in Zetland. Zetland provides an interesting case study on the current demand for rentals which is getting even greater as university students re-enter Sydney and need to secure a home. Along with a number of other Sydney suburbs, Zetland experienced a substantial price drop during the pandemic, but has since regained its footing in the rental market, now well surpassing its pre-pandemic rental yield.
Price increases also present some challenges for both tenants and landlords. Where tenants become priced out of certain suburbs and move into more affordable areas, rental prices are driven up by the wave of new demand there.
Additionally, lease renewals are presenting some difficulties as new contracts command higher rents, oftentimes not in line with the rapidly moving market for long as prices continue to shift week to week, and rents are unable to be increased more than once in a 12 month period.
