Demand for rental properties in Sydney keeps going up, and with limited availability, it's become very competitive.
The Sydney rental market – it's a key player in the real estate market! Nearly a third of the housing population in Sydney is connected to the rental market, and interestingly, more than 80% of Sydneysiders prefer to lease from middle-market investors who own single investment properties.
Demand for rental properties in Sydney keeps going up, and with limited availability, it's become very competitive. This has led to a diverse mix of people from all walks of life looking for rentals in and around the city.
The rental market has a significant effect on Individual private investors. A private investor is able to apply for advantageous tax incentives, like negative gearing and capital gains discounts on their investment properties. These taxes allow them to offset rental property losses with after-tax capital gains.
The Sydney rental market has been on the rise recently. According to ANZ’s CoreLogic report, it showed an average annual growth rate of 2.1% from the past decade until January 2020. In December 2022, it skyrocketed to an incredible 10.2% growth rate, reaching a reported series high.
With Sydney being a popular destination for both local and international renters, this growth trend is likely to continue in the future. If you're in the market for a rental property in Sydney, it's advised that you start looking early because it's a challenging market. Some of the driving factors behind this are:
- Limited availability: Sydney has limited rental properties available, so it's driving up demand and prices.
- Growing population: Sydney's population is on the rise, and that means more of its population is searching for rentals.
- Higher incomes: The average income in Sydney is going up, making renting more feasible for people.
- Tax incentives: The Australian government has tax incentives for investors which can be beneficial if you are looking into buying rental properties, which is why more people are getting into the rental market.
If you are looking to rent in Sydney here are some tips to help you prepare:
- Start your search early: The competition's fierce, so give yourself a head start.
- Be ready to pay a premium: Rental prices in Sydney can be steep, so be prepared to have your finances organised. At MGM Martin we always align our properties to the current market at the time of the lease agreement.
- Location matters: Where your rental property is situated affects the price and available amenities.
- Stay flexible: Being open to different options gives you more choices to find the right fit.
Sydney's rental market is thriving. If you're looking to rent in Sydney, keep these key factors in mind when applying.
MGM Martin has a large portfolio of properties that could be suitable for you which you can see here.
If you have any questions about applying, pricing or general tenant queries our office is always happy to help you can reach us in any of the three offices.
Zetland, 2/22 Gadigal Ave, Zetland NSW 2017