Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Snapshot: How long it’s taking to secure tenants

By Cameron Black
15 August 2019 | 1 minute read
for lease reb

The July rental vacancy results spell bad news for landlords across Sydney, as rental days on market rose and increased stock continued to place downward pressure on rents.

The number of rental properties sitting vacant jumped again in July, with Sydney now having the second highest vacancy rate of any capital city in Australia.

There are currently 20,000 properties sitting vacant in Sydney, an increase of 5,000 properties. This increased supply makes it tougher for landlords as it increases the time it takes to find a tenant and inhibits the ability to increase rents.

Conversely, renters continue to have an abundance of properties to choose from and increased bargaining in terms of rents.

To put the impact of this in perspective, it now takes an average of 37 days for a tenant to be found for a property in Sydney — a week higher than this time last year. Landlords are increasingly realising that vacancies are a meaningful cost that has substantial impacts on the overall returns of their portfolio, and particularly their cash flows.

The prospect of 37 days without rental income is giving landlords pause, with many landlords being much more amenable to reducing rents or providing other incentives to retain their existing tenants.

The impact of this is seen through the fall in average rents, with rents for houses falling by $10 per week in the June quarter and $5 per week for units in Sydney.

This comes at a time when the economy is weakening, and despite record low interest rates, property investors are feeling stretched as property prices remain well off their peak from several years ago.

Cameron Black is the managing director of Certainty Property.

Snapshot: How long it’s taking to secure tenants
for lease reb
lawyersweekly logo

Tags:

Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.