Increase in competition from tenants is driving rental prices higher, according to a real estate network which is experiencing increasingly high demands.
According to Di Jones Real Estate head of investment management Bridgette Barker, the agency is currently experiencing increasing demand for three- and four-bedroom family homes in the eastern and northern suburbs.
“Since the beginning of 2017, we’ve seen families willing to pay above the advertised price to secure a property,” Ms Barker said.
“In Randwick at 39 Clovelly Road, we had 17 people attend the inspection of the recently renovated three-bedroom, two-bathroom home. We received six applications for the property, which included an open plan living/dining space and breakfast bar flowing out to the rear deck and expansive garden. Priced at $1,550 per week, the demand for the family home saw someone willing to pay $1,700 per week just to secure the property,” she said.
With low levels of stock and rising demand in these areas Ms Barker expects the prices to continue to skyrocket for these larger properties.
“We expect to see fierce competition continue in the $1,200 to $2,000 per week family home market due to the low vacancy rate that we currently see at 1.4 per cent,” said Ms Barker.
“This compares to the January 2017 REINSW Vacancy Rate Survey, which saw the Sydney metropolitan market up 0.1 per cent to 2.1 per cent.
“The Di Jones average days on market for 2017 has varied from seven to 16 days and is another indication stock is low,” Ms Barker said.