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.
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.
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.
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.
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
