Tenant-friendly suburbs in Sydney’s pricey rental market have been revealed, with new data showing the neighbourhoods where renters have more choice and falling costs.
And the suburbs that look most attractive to landlords, with rising rents and few rental properties to choose from, are also shown in the Domain figures.
Areas with a wave of new housing supply are offering the most amount of choice for tenants, such as Ryde, North Sydney and Chatswood, as well as affordable spots such as Liverpool, Parramatta and Blacktown.
Median weekly rents for houses in Chatswood dropped 3.1 per cent to $950 over the year to September, while Ryde fell 5.8 per cent to $650. Each suburb offered more than 150 vacant properties on the last day of September.
Blacktown posted a 4.7 per cent drop in house rents to $410 a week over the past year, while Liverpool edged down 0.6 per cent to $440.
|Median price||Annual change||No. of vacancies, all dwellings||Median price||Annual change||No. of vacancies, all dwellings|
It comes as Sydney’s rental market recorded its biggest annual fall in more than a decade thanks to the tail-end of the city’s record construction boom.
Across the city, the median weekly asking rents for houses dropped $25 to $525 in the year to September, according to the latest Domain Rental Report.
Meanwhile, the list of suburbs that are more favourable to landlords includes Malabar, Putney, Lindfield and Sylvania Waters when it came to houses.
AMP Capital chief economist Dr Shane Oliver said rental properties were in more demand where there was less construction.
“These are suburbs where there hasn’t been a lot of construction, they don’t have lots of cranes and not a lot of apartments,” Dr Oliver said.
“They’re also suburbs that are attractive to live in – it has access to the water … access to the train line.”
Landlord-friendly suburbs for units included Kirrawee where rents have risen 8.7 per cent to $500, Darlington which has increased 8 per cent to $540 and Glebe rising 7 per cent to $534. All suburbs had few vacancies.
Dr Oliver said postcodes like Glebe that continued to have few rental options despite construction meant they were popular with renters.“Someone might have put up an apartment block and it’s filled quickly … some areas you could put a lot of supply and it won’t make a difference.”
Ray White head of property management Emily Sims said while landlord-friendly suburbs would always consist of areas where there were limited houses and units available for rent, amenities also played a part.
“What is good for a landlord is what is appealing to a tenant – good schools and train lines,” she said.
|MEDIAN PRICE||ANNUAL CHANGE||NO. OF VACANCIES||MEDIAN PRICE||ANNUAL CHANGE||NO. OF VACANCIES|
|Hurstville Grove||$650||12.10%||5||Millers Point||$990||10.00%||11|
Ms Sims said suburbs like Lindfield and Hurstville cropped up high on the list because of their train line and neighbouring schools, with many families moving into their catchment areas.
The Property Curator principal buyers’ agent Brendan Clark said areas like Marrickville, where he has two investment properties, has good access to amenities and proximity to the CBD, ensuring it is always tenanted despite recent dips in the market, with rents down 1.5 per cent to $493 a week.
“The reason I like it as a landlord is because the inner west is a fantastic place to live in and tenants love it,” Mr Clark said. “While you may not get the highest yields, there are people always looking to rent your property.
“My tenants both love living here. They wanted to sign up for two-year leases. It’s never happened before and it worked for me with the vacancy rates coming up.
“To me, it’s a bulletproof suburb.”
But for renters with a smaller budget and without the ability to move with ease, small drops in rents and higher vacancies may not make a difference to some, according to NSW Tenants’ Union senior policy officer Leo Patterson Ross.
“Someone who has been renting in Liverpool and Blacktown won’t be moving to Chatswood,” Mr Patterson Ross said. “We are seeing a relatively high vacancy rate, but that’s part of the problem. For a long time, we had low vacancy rates.
“What we’re seeing now is a correction towards a fair market but we haven’t hit a fair market yet.”
He said high construction levels have not lasted long enough to tip the rental market in tenants’ favour.
“We need to keep seeing pretty high construction rates to maintain those high vacancies.”