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.

Sydney’s trophy market crowned #5 in global rental growth index

By Zarah Torazzo
28 June 2022 | 1 minute read
Sydney aerial shot reb

Sydney has outranked the likes of Monaco, Hong Kong and Geneva in a top 10 list of global cities that have recorded the strongest prime real estate rental price growth over a 12-month period, according to a new analysis.

A report by Knight Frank revealed that the NSW capital’s trophy market clinched the fifth spot after recording a 7.2 per cent increase in rental prices on an annual basis. 

The harbour city’s prime market was outranked by the strong year-on-year rental price growth observed in the luxury residential markets across New York (38.5 per cent), London (26.4 per cent), Toronto (17.2 per cent) and Singapore (10.8 per cent).

Advertisement
Advertisement

Other upper-end city markets to enter the top 10 list were Auckland (5.9 per cent), Tokyo (5.4 per cent), Hong Kong (3.9 per cent), Monaco (2.7 per cent) and Geneva (1.1 per cent)

But while Sydney’s prime market saw strong rental price growth on an annual basis, its gains in the latest three-month period came in at a marginal 0.6 per cent. 

Commenting on the results, Knight Frank Australia head of residential research Michelle Ciesielski acknowledged that Sydney’s prime rental markets were well-insured against the downturn, thanks to the “relatively small number of prestige residential rental properties” on offer, as well as due to their distribution across the city and around the harbour.  

This meant that Sydney’s high-rolling properties did not feel the same level of pressure when the pandemic hit as other prime rental markets experienced.  

She explained: “When in town for business, regular international corporate travellers tend to lean more on hotel and short-stay accommodation. So when the global pandemic limited activity within close proximity of the CBD, Sydney’s overall prime rental market wasn’t as impacted compared to cities like New York and London.”

She also enumerated the three groups that have driven up prestige rents in Sydney since the start of the pandemic: people taking advantage of phenomenal sale prices by selling, returning expats and renovators.

“Prestige rentals in Sydney saw an uptick in demand from returning expats at the start of the pandemic, and at the same time, other expats were withdrawing their properties from the rental pool once arriving home.

“Throughout the pandemic and still experienced today, the range of properties to buy at the top of the market remains tightly held. Many have instead chosen to rent a home while they renovate their current home, or have purchased a property in a good location but one that requires extensive works to be done,” the expert stated. 

With the construction delays the market is currently facing, Ms Ciesielski sees strong yields for premium rentals as a trend that will continue, with many trophy real estate owners required to hold on to their rental property for “much longer” than they first envisioned. 

Sydney’s trophy market crowned #5 in global rental growth index
Sydney aerial shot reb
lawyersweekly logo

Tags:

ABOUT THE AUTHOR


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.