Rental prices are plateauing across Sydney, and we’re still seeing reductions in the Inner West and Wentworth Point. The average 2-bedroom rental in the Inner West has dropped to $746 per week, 4.36% lower than it was in May 2024 ($780). However, various factors are driving this shift, including more supply on the market, newer developments, reduced immigration and renters moving out of Sydney’s inner suburbs.
Despite this rental prices in the Inner West are still up 5.3% year-on-year. Greater Western Sydney has seen a greater rise in rental prices, with 2-bedroom apartments increasing 8.3% over the last 12 months as renters seek more affordable properties.
Vacancy numbers appear to be stabilising across Sydney, with the rate remaining at 1.7% from June to July, a fairly consistent average over the past 10 years. However, it is still much higher than in February and March, when it was sitting at a record low of 1.1%.
Stabilising Market Trends
After a period of sharp increases, rental prices have started to ease, and this shift is encouraging many tenants to stay put and renew their leases. This trend is particularly evident in Wentworth Point, where our properties continue to outperform the local market:
- 37 properties leased in August, with 24 in Wentworth Point.
- The average days on market for Chidiac Realty properties in Wentworth Point is 12.9 days, compared to a suburb average of 32 days.
- The median days on market across all Chidiac Realty Sydney properties is 11.5 days.
The data shows that our properties are leased approximately 60% faster than the suburb average, indicating strong tenant interest, our extensive networking abilities and effective marketing strategies.
If we look back over the last year, however, our total number of leases is still 25% lower than August 2023, reflecting broader market conditions.
The Changing Market Dynamics
The current stabilisation in rental prices is partly due to several key factors decreasing demand.
While existing properties are staying on the market longer, resulting in more supply, the number of newly advertised listings is actually down 20% compared to July 2024 and leased properties dropped by 11% month-over-month. Changes to immigration laws, coupled with shifts in consumer behaviour driven by the rising cost of living, have contributed to this reduced demand.
Strategic Insights for Landlords
For landlords, these changing market trends offer both challenges and opportunities:
Tenant Retention: With more tenants choosing to stay and renew, now is a good time to focus on maintaining strong landlord-tenant relationships. Ensuring properties are well-maintained and fairly priced will help encourage longer-term leases.
Property Presentation and Pricing: Well-presented and strategically priced properties continue to attract strong interest, as evidenced by our fastest leasing times in the area. Consider minor upgrades or flexible lease terms to stay competitive and reduce vacancy periods.
New developments to drive growth: As Wentworth Point continues to develop, we will see more supply hit the market over the next 24 months. However, the local appeal to potential tenants and buyers will only increase with new infrastructure supported by the local and state Governments.
Your August Snapshot
Our highest rentals in August were a 2-bedroom in Zetland for $1,150 per week, and a 3-bedroom in Wentworth Point for $1,100 per week.
141 new listings came into the local rental market, with Chidiac Realty holding a strong 22% market share.
Vacancy rates continue to stabilise, with a local Inner West vacancy of 1.8% recorded in both July and June. However, this is still a significant increase from February and March, when it was down to just 1% for the Inner West.
A well-presented property will always attract more interest and could help reduce your days on market. Contact our team if you would like any presentation advice.
Grand opening of the new Wentworth Point Sports Park
The grand opening of the new Wentworth Point Sports Park on Saturday, 7 September, is more than just a celebration of a new recreational space—it’s a significant enhancement to the community. This brand-new facility, replacing the pop-up park opposite Marina Square, promises to be a central hub for family activities, sports and community gatherings.
The park is designed to cater to all age groups, featuring soccer pitches, basketball courts and a playground that will not only provide a safe environment for kids to run around but also encourage a healthy, active lifestyle for residents of all ages.
In addition to its recreational benefits, the new sports park and high school make Wentworth Point even more attractive to potential buyers and renters. The opening event, scheduled from 12 - 3pm on 7 September, will offer a sneak peek into the park’s features and facilities.
This park represents a key investment in Wentworth Point’s future, fostering a sense of community while enhancing the area’s appeal as a vibrant and family-friendly suburb.
