This late in the year it’s now most likely that a lot of property owners, unfortunately, will be seeing their properties sit vacant over the Christmas period until significant numbers of prospective tenants hit the streets in mid-January and onward.
This is not from a lack of trying as seeing first hand, properties being offered with incentives such as rent-free periods and some significant rent reductions offering good value to tenants that are willing to move just before Christmas or start their year off with a pre-planned move. I’m also noticing properties listed for Lease with multiple agents, prospective tenants notice that too and sometimes find that a bit off putting.
Come 2019 several new high density developments are set for completion and continuing development will be adding onto an already constant and ample level of supply.
Tenants typically have the rental market in December but mid to late January and into February typically does see an increase in demand for properties.
My thoughts are that we’ll see a slower than usual January with only properties with the best offerings and value for tenants being snapped up first.
Predicted Growth Areas / The one’s to watch:
Several suburbs are being eyed as the ones to watch in 2019 for both an increase in rental demand and interest from investors, touching on a few of these areas where we manage property there are also other suburbs being closely watched on the North Shore, areas such as Brookvale and Millers Point.
+ Carriage works developments
+ Growing and evolving Commercial Technology Park with several notable occupants
+ Proximity to Arts / café scene i.e. Erskineville, Newtown & Redfern,
+ Ease of access to transport & the CBD
+ New Apartments
+ Danks Street precinct
+ Metro / Train line under construction (Raglan & Cope Streets)
+ Proximity to CBD & Airport Access
+ Affordability where compared to Coogee & Bondi
+ Beach side lifestyle
+ Gentrification continues
+ Access & infrastructure improvements in the works
+ Walking Tracks, Parks on the Waterfront
+ Quality development of well designed communities
+ Easy Ferry commute along the Parramatta River
What do I see ahead for the New Year?
- Amendments to the Residential Tenancies Act coming into place, read what this means for you in my Tenancy Reforms Blog Post. Changes will impact tenants, owners and agents alike and change the way many of us do business and what we as Agents and Owners offer to tenants
- Reforms and changes to licensing rules and training requirements for Registered and Licensed Real Estate Agents
- Very slight rent increases with more owners opting to secure and retain good tenants, owners will be more conscious of minimising vacancy and prioritising keeping their tenants’ content especially considering more flexibility for tenants to be able to Break their leases down the track and fluctuating vacancy rates
- New rental supply from developments nearing completion in growth areas such as Mascot and Green Square which will see rents in these areas flatten out due to competition
- Increase in Vacancy Rates due to new apartment development stock
- Landlords holding onto their rental properties and holding back from selling where they can buffer for vacancy and rents that aren’t increasing
- Influx of first home buyers which could spell and increase in investors as well as tenants moving to purchasing in a down Sydney market. A third of first home buyers are said to be rent-vesting instead of buying their first home.
And with certainty, much media hype about the doom and gloom of the Sydney Property Market so definitely a lot of attention will be focused there throughout the year. So in that regard nothing is unchanged from 2018 🙂
As the New Year and its cycle take us where they will, there’ll always be the need to navigate through new legislation, ensuring compliance and working through an ever-changing rental market and I’ll keep on blogging about it all.
Next year i’ll be bringing you some new blog posts regarding Depreciation Schedules, yields and return on investment and hope to have some guest bloggers on board from the world of finance and buyers’ agents in the New Year as well as well as some worthy content to my clients in my E-Newsletters.
What do you want to read about though?
If you have any suggestions as to what you’d like to read about in 2019 feel free to reach out, I am always open to thoughts and suggestions!
Best Wishes ahead of the festive season and thanks for your following this year 🙂