In recent months, the Sydney rental market has shown clear signs of stabilisation. As we continue through September, the sharp rental price increases that dominated earlier in the year have slowed, particularly in key areas such as the Inner West and Wentworth Point. This easing in rental prices is prompting more tenants to remain in their current homes, reducing tenant turnover and contributing to lower vacancy rates.
Building on the trends from August, rental prices have levelled off across many Sydney suburbs. The reduced pace of increases means tenants are feeling less urgency to move, as more are renewing their leases and opting for stability. This trend is particularly clear in Wentworth Point, where our agency saw a notable decrease in the number of newly advertised properties. Compared to 141 in August, only 112 new properties were listed in September.
This continued reduction in stock, paired with stronger tenant retention, has contributed to quicker leasing times and lower vacancy rates, which dropped to 2.4% in Wentworth Point and 1.6% in the Inner West. These lower vacancy rates reflect fewer available properties on the market and are a positive indicator of a stabilising rental market.
Wentworth Point: Growth and Stability
As we observed last month, the new Wentworth Quarter Project launched in the area, but it hasn't led to a significant movement of tenants from our existing rental pool. The higher rental prices in these newer developments seem to target a different demographic, leaving the majority of tenants in Wentworth Point opting to stay put.
The ongoing reduction in newly advertised listings aligns with a healthier long-term trend for both landlords and tenants. A lower turnover of tenants reduces transition costs such as leasing fees and vacancy periods for landlords, and moving expenses for tenants. This stability should bring benefits to both parties in the long run, as fewer changes lead to less financial strain on both sides.
Chidiac Realty’s Performance: Continued Strength
Our performance continues to be strong in the face of these market dynamics:
- We leased 30 properties in Wentworth Point in September, up from 24 in August, further highlighting the growing stability and demand in the area.
- Across all regions, 37 properties were leased, consistent with August’s figures.
- The average rental price for a 2-bedroom in Wentworth Point settled at $792, while the Inner West and Greater Western Sydney remained lower at $735 and $637, respectively.
- Vacancy rates improved further, with Wentworth Point reaching 2.4%, reflecting a quicker turnaround of properties and reduced time on the market.
- Chidiac Realty continues to lease properties efficiently, staying ahead of the local market with shorter leasing times and a consistent flow of tenant demand.
