The amount of time Sydney homes are sitting advertised for rent has stretched out to 50 days, despite the fact nearly a third of rentals across the city have slashed their asking price. The latest figures from REINSW showed the proportion of rental listings with a price discount was 30.1 per cent in November 2020, up 6.7 percentage points compared to November last 2019.
Properties are taking longer to rent, too: the number of days on market has risen by 15 per cent from 43 to 50 days. On that note, reports show the rate of discounting varied region to region across NSW, with the rental properties closer to the city bearing the brunt of it.
The largest amount of rental discounts occurred in the inner west, where 36.2 per cent of listings had reduced asking rents – up from 24.3 per cent at the same time last year. The inner west was not alone, with many other areas close to the city seeing around a third or more of rental properties discounted.
Reports show when prospective tenants are doing their searches, they are no longer searching a specific suburb however, they are searching a particular price range. The working-from-home phenomenon had allowed tenants to look across several suburbs to find a rental with an extra bedroom or upsize from a unit to a townhouse on the same budget.
Another defining trend is the increase of people are leaving metro Sydney because they don’t have to work in the city anymore.
The two pockets of the city that held up better than the rest of the city were south-west Sydney and the northern beaches – both regions saw an improvement in the rate of discounting compared to November last year. In the south-west, discounting dropped to 15.9 per cent, down from 23.5 per cent in the same period.
Meanwhile, tenants living in NSW’s regional areas are far less likely to get themselves a discount, thanks in part to the sheer number of city slickers who’ve fled Sydney for the country this year. The sudden demand for rental properties helped every regional area contain discounting to less than 10 per cent of their listings.
It also helped reduce the rate of discounting dramatically compared to a year ago.
Popular country areas including Orange and the mid-north coast saw less than one per cent of rentals with reduced rents, down from 5.5 per cent and 7.7 per cent respectively.
Even major regions such as Newcastle, the Southern Highlands and the Central Coast saw discounting apply to less than 5 per cent of rentals.