Are you paying too much rent? Landlords grapple with the highest apartment vacancy levels in more than two decades driving the cost of renting down
- Sydney records the highest number of untenanted homes in 20 years
- It has resulted in a 2.9 per cent drop in rental prices across the city
- Tenants are encouraged to bargain before signing a new rental agreement
Landlords are being forced to slash rental prices to attract tenants as Sydney suffers through the highest property vacancy level in 20 years.
Data by research group CoreLogic shows Sydney has the highest number of untenanted homes since vacancies were first recorded in 2005, with more than 25,000 properties uninhabited, reported realestate.com.au.
The number of empty homes represents 3.5 per cent of the market, and experts say the epidemic has resulted in a 2.9 per cent drop in rental prices right across the city, saving renters about $520 per year.
Data by research group CoreLogic shows Sydney has the highest number of untenanted homes numbers since vacancies were first recorded in 2005, with more than 25,000 uninhabited homes
Economist Nerida Conisbee said there could be even further falls in rent over the rest of the year due to increasing vacancies.
‘Over development means there is a huge supply of rentals, and more are coming, but there are also less tenants,’ said Ms Conisbee.
She also noted renters were moving to states such as Queensland, resulting in a shrinking pool of potential renters.
In areas where there’s an oversupply of new homes, tenants are saving more than $3,000 per year.
Rental prices in North Ryde have dropped from an average of $650 per week to $580, meaning new renters would pay $3640 less than those who signed lease agreements the year before.
Kellyville landlords are offering a month rent free as about seven per cent houses in the suburb are vacant.
Experts believe such lucrative offers are given when landlords and their agents don’t want to reduce rents and keep the rental market strong in terms of prices.
Tenant’s agent Marcelle Wever of Sydney Rental Search believes tenants can get a good bargain on one or two-bedroom apartments.
‘There’s an oversupply of these homes and they take a while to lease out,’ she said.
In Strathfield unit rents have dropped on average of five per cent or $30 per week, whereas median rents in Sydney Olympic Park are down seven per cent or $40 per week.
Experts encourage tenants to bargain before signing a new rental agreement.
Kellyville landlords are offering a month rent free as about seven per cent houses in the suburb are vacant