The wider Sydney rental market is still seeing increased supply as the number of available rentals reaches an 18-month high across the city. Locally, we’re seeing the market stabilise more, with our Chidiac Realty team reporting an increase in properties leased during July compared to June.
While we expect numbers to plateau over the next few months, it’s important to recognise the market remains competitive. By ensuring your property is ready for lease and keeping a pragmatic approach during negotiations, you can reduce the number of days your property stays on the market and attract the most suitable tenants.
In the past 12 months, there’s been a 20% rise in lending to investors, likely attributing to the slower pace of rent rises and more choice for tenants. The typical rent for a Sydney dwelling grew by only 8.8%, a slowdown from the nearly 14% rise we witnessed throughout 2022/23. PropTrack economist Anne Flaherty suggests that conditions may drop further if investor activity continues to rise.
Your July Snapshot
The average rental price for a one-bedroom apartment was $645 per week, with a two-bedroom apartment averaging $772 per week. Our highest rental for July was a two-bedroom apartment in Rhodes for $1,100 per week.
Chidiac leased a total of 50 properties in July, down approximately 15% from the same time last year but a 25% increase from June 2024.
Supply is still fluctuating as more tenants opt for cheaper housing further out of Sydney. In June, we saw a vacancy rate of 1.7%, slightly 0.3% higher than in May. While we’re not seeing any major changes to vacancy rates locally, new properties and developments are entering the market weekly, so tenants have more choice.
Our continued advice to landlords is to remain realistic, consider offering longer-term leases to quality tenants, and keep your property well-maintained and presented.
Wentworth Point Market Insights
In July, the median rental price in Wentworth Point was $700 per week, with a Chidiac Realty average of $717 per week. These numbers are down slightly from the yearly average (August 2023 - July 2024) of $725 per week.
In Wentworth Point, 156 properties were listed for lease in July, up 16% from June (134), and 122 properties were leased, up 24% from June (97). Chidiac Realty has a current market share of 24.3% of all leased properties in Wentworth Point.
The average days on market locally are 29, and we’re proud to have a consistent Chidiac Realty average of just 14.2 days.
Across Sydney, our team has been busy with a total of 289 leased properties from January 2024.
Overall, we’re still seeing the same momentum, with enquiries on the rise, but also more supply entering the market.
How to lease your property in a changing market
Local developments and the availability of newer properties across Wentworth Point and the Inner West continue to impact rental prices. Tenants have an abundance of similar properties to choose from, so it’s important to highlight your property's features and present it at its best.
Our advice remains to keep your property in good condition with excellent presentation. Updating appliances, a fresh coat of paint and new carpet could help set your property up for success.
Be mindful of weekly rates and how they compare to the local market. Consider the value of quality tenants when reviewing applications and be prepared to be flexible on rates for the right applicants.
Proposed rental laws to stop no-grounds evictions
The Minns Labor Government in New South Wales has announced new laws to end no-grounds evictions, marking one of the biggest reforms to the rental market in a decade. This comes as the state grapples with a housing crisis, with around 33% of the NSW population renting, an increase of 17.6% since 2016. The new laws require homeowners to provide a valid reason to end both periodic and fixed-term leases. This change aims to bring more security to renters. The reforms align NSW with other states like the ACT, South Australia, and Victoria, which have already legislated models to end no-grounds evictions. The proposed new law will now be subject to stakeholder engagement and will likely begin early next year, subject to this consultation. Read more about the proposed new laws online.
The cost of living continues to shape rental demand
We’re still experiencing the effects of the cost-of-living crisis, and with the Reserve Bank of Australia’s (RBA) cash rate decision for August imminent, both landlords and tenants need to ensure they are finding the right fit.
Many students are moving back in with their families, and changes to the Temporary Graduate Visa Program visa from 1 July 2024, have resulted in many students returning overseas. Professor Duncan Bentley from Federation University reported a drop of $80 million in revenue, linking the drop to visa refusals. Local university lecturers have also weighed in, noting that some universities have seen a 25% drop in admissions due to visa requirements.
This has highlighted an increased supply of smaller apartments across Sydney. Young professionals are also seeking larger apartments to share, so it’s never been more important to showcase your property's benefits and ensure your presentation maximises the use of space.
NSW Government update to parkland on Wentworth Point peninsula
Planning and construction of a new park on Wentworth Point’s Peninsula are set to commence in the next few months. According to the latest NSW Government media release, the 4-hectares of open space will include a shared park for the community and the high school. Construction will begin in September 2024, with an expected opening in mid-2026 (pending final approval).
This continued investment into our area will further enhance the long-term value of our properties.
New Wentworth Point High School could bring in long-term rental opportunities
The brand-new Wentworth Point High School, set to open in 2025, could impact demand over the next 6-12 months. Conveniently located next to the primary school, this facility will provide much-needed educational resources to the area. Given its strategic location and the quality of education it promises, we’ll likely see more families moving into the area, which could push demand for larger and family-friendly properties.
