With the completion of March and the first quarter of 2023 already behind us, it's safe to say that the market is faring quite well. Steady buyer activity and a solid demand are evident, with a noteworthy 15% increase in transaction volume compared to the first quarter of 2022. This is particularly remarkable considering the ten consecutive interest rate rises we've faced over the last ten months.
- Over March, Wentworth Point recorded a 2% decrease in stock levels, and a significant 48% increase in transactions with 45 properties unconditionally sold. The median price remained steady, raising slightly to $700,700 from $700,600.
- Our team exchanged 18 properties (14 in Wentworth Point), continuing a long standing low average days on market (30), more than half the amount of time compared to the average days for the suburb (65).
- Buyer activity continues to show positive signs by remaining unchanged with consistently strong enquiry and attendance figures seeing 367 groups across 32 properties. This is an impressive average of 11.5 groups per property - figures almost the same this time last year, well before the rate rises.
- New data shows early signs that consumer spending is slowing and inflation has slightly eased. While it is still too early to determine if this movement will become a trend, the RBA has put a pause on its interest rate hikes over April, providing much needed relief to prospective buyers and mortgage holders.
- Rental prices are still surging and the low supply environment continues to place great pressure on the very high demand for rental properties as more frustrated tenants are deciding to fastrack their buying plans.
- The newly elected Labor government will raise the first home buyer stamp duty exemption on homes up to $800,000 (previously capped at $650,000), and the concessional rate up to $1 million (previously capped at $800,000) from 1 July. They’re also likely to repeal the recently introduced opt-in property tax scheme, with those who’ve opted in for the annual tax before 1 July still able to continue with their current arrangement.
View the Wentworth Point snapshot.
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RENTALS
Wentworth Point
This month saw 140 properties hit the market for rent, with 30 (21.5%) under our management - figures very consistent with previous months. 135 homes were successfully leased, with 26 (19.3%) by our agency, a figure unchanged compared to March 2022.
What has changed significantly since this time last year is the average days rentals are spending on the market, with our 8.6 day average versus the suburb average of 34 days currently 45% lower than March 2022, showing the increasingly strong levels of demand and competition for rental properties.
Rental prices also continue to rise, with our average rent for a one bedroom at $611 - up approximately 5% since last month, while two bedrooms are averaging $814 - marking an 11% increase.
The highest rents achieved by our agency in Wentworth Point are $700 p/week for a one bedroom, $950 p/week for a two bedroom, and $1,050 p/week for a three bedroom, while out of the area one of our Glenorie properties has fetched $2,200 a week.
Wider Sydney
Overall, we leased 10% more homes this month compared to this time last year, connecting 50 homes in total with their new tenants. With a notable 30% drop in rental enquiries since February, it’s fair to say the university rush to secure a rental before first semester has settled.
8.6 Days
Sydney’s red hot rental market is not slowing down, and vacancy rates are at very low levels across the city and the country, with the highest rental spikes impacting city apartments the most. Sydney unit rents have risen 18.1% in Sydney in the past year, with lack of availability being one of the largest influences on price rises.
With the vacancy currently at 1.4%, conditions are extremely tight and this continued downward trend is one we’ve not seen in a rental market for over a decade as the availability of rental accommodation in Sydney is currently at its lowest since November 2011.
The market is also experiencing the additional pressures of population growth with the surging return of migration - now above pre-pandemic levels. Those who can afford to buy are being pushed into making the decision now, with tenants facing very limited choices about where to live, and the likelihood of further rental increases on their current lease.
Some tenants are facing eviction from owners who understandably want to increase rents in line with the market and rising interest rates. Balancing the increasing financial responsibilities of landlords and the pressures this places on many tenants is a challenge our agency is trying its best to manage, acknowledging that rental increases are only permitted once every 12 months under NSW legislation.
