Time On Market For Rental Properties Across Sydney Stretching Up To 60 Days
According to the latest data, the average property for lease in Sydney was vacant for 32 days over the year to April, up by four days compared to this time last year. Meanwhile, vacancy rates have increased by 1.1 percentage points to 3.1 per cent. Anecdotal evidence indicates that landlords are increasingly finding themselves reducing rents, offering shorter leases and even making changes to their properties in order to attract quality tenants. This is consistent with a broader softening of the general economy.
The situation is particularly pronounced for investors that are looking to lease their newly built apartment straight after settlement. Often there are tens or even hundreds of similar apartments coming onto the market at the same time, with the market rent tending to drift towards the asking advertised rent of any apartment. After all, why would anyone pay more rent for exactly the same apartment? This situation is magnified when there are other blocks of apartments hitting the market in close vicinity to your apartment. It’s not just investors buying off the plan that are feeling the pinch, with owners of existing properties struggling to find tenants as newer apartments are built, increasing competition for tenants.
Properties in Box Hill, Windsor, Kenthurst, Prospect, Constitution Hill and Kings Park in the west all took at least 50 days to rent despite lower stock levels. For landlords in those areas, experiencing two months without rent whilst still paying their investment loan can cause significant cashflow issues and is a stressful experience, especially if they have a very large property loan.
Certainty Property provides a rental guarantee, whereby if your property is vacant, your tenant is in arrears, or market rents fluctuate, we pay the rent instead. For clients of Certainty Property, higher vacancies is not a concern given they experience predictable, consistent cash flows on their investment property. Certainty Property guarantees rent on both existing and newly built properties. If you’re concerned about rising vacancies, please feel free to give us a call on 1300 577 298 or contact firstname.lastname@example.org