It's an investor's market.
Feeling pressure and angst over housing is something that Sydneysiders are too used to. However, as of late, renters opposed to buyers are feeling the squeeze.
Over the last quarter, the rental market in Sydney has tightened, resulting in skyrocketing rental prices, increases for existing tenants and uncertainty around securing suitable housing. Although many are struggling under these new pressures, savvy investors are taking advantage of changing trends and higher yields.?
Sydney remains the most expensive city in Australia to rent a unit, averaging $575 per week. Across all major cities, asking rents are also at historic highs. Rents are rising at the fastest annual pace across the combined capitals, and vacant properties are at an all-time low. With interest rates projected to reach?3.85%?by May 2023, we continue to notice glimpses of?uncertainty?and opportunity across the Sydney property market.?
This time last year, Sydney offered just shy of 20,000 rentals for lease. Currently, the rental supply has halved, offering Sydney tenants less than?10,000?properties. The limited stock has budgets stretched, with the price of residential rents surging nearly 29% above the annual average!?
Sydney property prices are becoming more affordable, with the average house price falling?13.3%?from last year. Rental yields increase as property prices fall and rents surge under increasing demand levels, creating excellent buying opportunities for the savvy investor.??
Seeking advice from an experienced buyer's agent will provide guidance to secure the right investment property that is right for you.
Thomas Alpe | General Manager of Cohen Handler Buyers Agency
0414 011 222