Sydney Real Estate Rental Property Market Report June 2009
Author: admin // Category: Real Estate Agent
The current reserve bank of Australia cash rate stands at 3%, a 60 year low. The rapid and dramatic slashing of interest rates earlier this year has been very favourable to property investors.
Mortgage repayments have been reduced by up to half for some investors, helping to bump up the total yields on their investment properties. This favourable environment has been luring savvy investors back into the Sydney property market. For the first time in a long time there are opportunities for positively geared property in the Sydney real estate market.
Median Weekly Rents Sydney
Units Houses Unit Yields House Yields
April 08 $380 $390 5.05% 4.15%
April 09 $410 $450 5.47% 4.49%
The current average weekly rent for Sydney houses stands at $450 per week (up from $390 a year ago) a rise of 15.4% year on year. The average weekly rent for units is currently $410 per week (up from $380 a year ago) a rise of 7.9% year on year. This gives an average gross yield for house and unit of 4.49% and 5.47% respectively.
Despite these strong figures, there are signs of a slowing of rental growth over the last quarter. This slowing has been driven by an increase in renters becoming property buyers given the rise in housing affordability, lowering of interest rates and increased first home owners grants. Landlords are also no longer in a situation were they request their tenant to cover any raised interest rate repayments, reducing the pressure to consistently raise rents. However, this slowing is predicted to only be temporary given the large undersupply of housing in Sydney and an overall pend up demand for accommodation.
The Sydney rental market is currently in a period of transition with several factors creating an unusual market situation. This is bound to stabilise soon, the major factor that will return the market to normality will be the reduction in the governments first homeowners grant due later this year. For now we are in an unusual situation were it is a great time to be a property investor given the current interest rate environment, and renters are also enjoying a reprieve in rental pressures.
Just Rent Sydney are a specialist property management agency based in Inner West Sydney. We offer an expert 1000 rental property service and have won real estate industry awards for our service.
By: Just Rent Sydney Real Estate Agency
Where is the best place to invest in property? | ProPlan Financial
He explains, ‘If fewer people are able to afford buying real estate, it means more people remain in the rental market. This is one of the reasons why rental properties are experiencing such fierce competition.’ Residex Chief Executive Officer, John Edwards,’Buyers watch Sydney closely’, Your Investment Property, September 2009. · ‘The Insider’ e-newsletter, Loan Market Group, October 2009. · ‘The Residex Report NSW and ACT’, Quarter ending September 2009.
Australian Real Estate Making A Strong Comeback
See the following article from Global Property Guide for more on this. Australia real estate. Mandurah, Australia. The Australian housing market has made a strong comeback. In the third quarter of 2009, the average established home price . In Q3 2009, the median asking rents have remained flat from the previous quarter, according to figures from the APM. “The median asking rental prices for houses and units in Sydney and Perth continued to decline, [while] a small rise.
Top 10 Overseas Property Investments in 2010 | arizonahomeslist.com
A recent Australia property report projected that average residential prices in nearly all capital cities would increase by between 11% and 19% by 2012, with the greatest property price rises expected to be recorded in Sydney, Adelaide and Melbourne. While the odds may be stacked up against the South African football winning the World Cup in 2010, it is not too far fetched to assume that the country’s housing market could prove to be the real winner of the tournament.
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