Leasing Statistics & Rental Update – August 2024
Following the initial surge in international students returning to Sydney earlier this year, August saw a noticeable shift in the rental market dynamics as these students have now settled following the start of the 2nd Semester. The high absorption rates that characterised the beginning of the year has gradually tapered off. This month, the turnaround time between tenancies has extended to an average of 19 days and there has been an approx 7% adjustment down in rents over last 12 months in city fringe furnished units.
Over the last few months we have noticed a reduced level of urgency and competition, despite high enquiry numbers, particularly around furnished stock in the city fringe. Our suburban stock continues to be taken up quickly, however we have noticed that rents have begun to plateau. Household sizes seem to be increasing with more people opting to share to deal with the cost pressures of increased rents
Vacancy rates across Sydney have experienced a slight uptick, reflected in our portfolio’s vacancy rate of 2.7%. Although this is still below the Sydney CBD average, it marks a significant change from the sub-1% rates seen earlier in the year.
Looking ahead, we anticipate that the rental market will stabilise, with fewer fluctuations in demand as international students and other tenants settle into long-term accommodations. This stabilisation is expected to keep rental rates steady in the coming months.
August Highlights:
- Enquiries serviced = 914
- Open inspections = 243
- Total tenants inspected = 727
- Applications received = 169
- Apartments leased = 21
- Average turnaround time between tenancies = 19 days