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September 2018

SYDNEY PROPERTY MARKET UPDATE – SEPTEMBER 2018
By Bernie Tynes

11/09/2018 10:23am

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Rental market review – TENANTS MARKET AS RENTAL GROWTH DETERIORATES

Metropolitan Sydney and outer Sydney saw vacancy rates rise by 0.1 per cent and 0.3 per cent in August according to the Real Estate Institute of NSW (REINSW). Sydney’s vacancy rate is currently at a 13-year high of 2.8%. Gross rental yields are now close to historic lows with apartment median rents in metropolitan Sydney declining by 1.8 per cent to $540 a week.

The current trend in the rental market in in line with the winter seasonal trend coupled with numerous lease breaks as people start buying properties of their own or seek cheaper rentals due to increased competition and a vast number of newly completed properties entering the rental market.

Sales market review

Over the past year, dwelling values in Sydney have fallen by 5.4 per cent. The decrease being driven by disincentives to overseas buyers and tighter lending condition In the next two years, we will see the highest increase in unit supply with “off-the-plan” construction being completed (76,977 new units completed by 2020). In many cases, purchasers may find the unit value at the time of settlement is lower than their contract price.

Despite all this negative press predicting property values dropping over spring and a generally tough winter market, the initial Sydney auction clearance rates for September have held a respectable 58.6% compared to 67.1% a year ago with rates in the City and East around 62.5%. Sydney still stands among the best performers in unit sales, with only an average of 33 days in the market. Vendor discounting was between 5.1 per cent and 10.1 per cent for units.

To obtain a free market valuation of your property, please call Michael or Jimmy on 9699 9179 or email mk@infinityproperty.com.au or visit us online at https://www.infinityproperty.com.au/sell/sales-appraisal