When will inner city rents go back up to pre covid levels?

Inner City rents in Sydney and Melbourne in particular are still heavily discounted due to covid, Sydney still being 40%+ lower, when do you think these will 'normalise' back to pre covid levels?

 

Really? Can you post some examples and areas?

 

I'd say Sydney inner city apartments (Potts Point, Surry Hills, Pyrmont etc) are down more like 5-10% depending on features, while Sydney CBD is down up to 20% but again it depends on the building, facilities and condition. People are chasing lifestyle - renovated, space, natural light, views, facilities... so this impacts the rentability but almost nothing is down 40%+ from pre-covid in Sydney.

With good marketing and flexibility, property rents have been slowly climbing back up.

 

I had to drop the rent on my Melb Docklands dual key (1 -bed apt/studio) from $440+$300 to $300+$250. No signs of recovery yet

 

I'm guessing when WFH becomes wound up, and to some degree when international borders reopen to foriegn students etc.

Everyone I know is moving away from the city. I'm an inner city renter so enjoying the current climate, although conversely the innercity lifestyle is much quiter than Id like... to the point I might as well move to the outer suburbs anyway.

 

Houses in Melbourne rents are down too

 

My lease (inner city) is 50% less than the the previous tenant had been paying for 5+ years, prices seem similar in the streets/ areas around me.

 

I'm happy to have a look for you if you want to PM me the address, we manage properties in Pitt, George and Kent St and the worst was a 30% drop last year but it has been gradually improving.

 

Here's one example

https://www.domain.com.au/property-profile/99-336-346-sussex-street-sydney-nsw-2000

 

In Southbank, VIC, weekly rents still down from 600-650 to 380-450 currently for 2-2-1, Central Equity apartments. Plenty of stocks, no signs of recovery…

 

I wonder if recovery will start happening once international travel resumes (whenever that is)?

 

I believe it will help, but I’m not very confident with current political tensions with China…

Early last year, the heat wasn’t that intense and I believed strongly the students will come back quickly. But now the fatigue has really set in… many of my friends in Asia have started to look domestically/closer for education. Asians especially Chinese are now less eager to migrate overseas especially to Anglosphere countries like US, Canada, UK and Australia which racial attacks on Asians are increasing…

 

I am looking for a place in the Eastern Suburbs (or at least my eye is always on the dial).
Prices seem to be going up in terms of rent.
2 bedroom apartments in Bondi Junction are fetching anywhere from $900-1200 a week...

They are healthier than pre-pandemic

 

Any idea about Paddington/Edgecliff terrace house rents?

 

No clue - but definitely not cheap enough for me. They are hovering around the $1000-$1500 mark for a 3 bedder depending on the renovations.

 

Wow, so its only inner city that seems to have had a big drop?

 

Plenty of demand for 3 bedder terraces - just rented one in Darlinghurst for $50pw more than pre-covid after 1 week, lots of people looking for more space.

 

Unfortunately Chinatown is probably the worst spot in Sydney I think a lot of properties there also aren't well marketed - poor photos, limited copy, hard to get a hold of the agent..

 

What makes it the worst spot? Seems pretty good location wise close to darling harbour/ transport etc.?

 

I meant the worst impacted in terms of rents - the lack of tourists, overseas students & hospitality workers, plus apartments that are a bit dated, isn't making a great combination in this market.