Join Australia's most dynamic and respected property investment community

Slow Rental Growth

Discussion in 'Property Market Economics' started by 2FAST4U, 22nd Jul, 2015.

  1. 2FAST4U

    2FAST4U Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    925
    Location:
    Adelaide
  2. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    My apartments have moved > 5% (Marrickville) though being near the newish Light Rail link has helped that a lot.

    I'd imagine Sydney rents will do pretty well the next few years. Except for apartments in oversupplied areas.
     
  3. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,235
    Location:
    NSW
    You'd have to expect, with the level of investors in the market at approx 50%, when normally they are at 30%, that there would be more properties available for rent and therefore rental increases would be lower than normal.

    I read an article today that said approx 30% of FHB are buying an IP first and usually in an area they would not choose to live themselves. That will be adding to the available rental supply.

    This will all correct at some point in the future, as it always does, but it does make property selection more important than ever to attract a good-paying tenant.
     
  4. 2FAST4U

    2FAST4U Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    925
    Location:
    Adelaide

    Yeah inner west Sydney has been booming!

    Sydney and Melbourne seem to be ticking along at inflation pace. The only concerns are Perth and Darwin with Perth struggling due to the mining boom slowling down, which could also result in slower population growth. Hence, resulting in more vacancies and deflationary pressures.
     
  5. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    516
    Location:
    Sydney
    Collectively it's also important to remember that these stats are based on entire cities as a whole- not really that helpful when you consider population size and different demand/supply issues across suburbs. For example, in Sydney suburbs where infrastructure/dvpt is underway vacancy rates are likely to be higher as investors speculate and add to oversupply of rentals. Micro factors vital before drawing conclusions on data.
     
    paulF and Propertunity like this.
  6. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,454
    Location:
    Perth, Melbourne, USA
    I hear you.

    This is what happened in Perth recent boom, every man and dog buying investment properties, when the market went soft so did the rents, oversupply.

    Would not at all be surprised if Syd goes the same way unfortunately


    MTR