November 2018 Rental Market Update

November has been a record-breaking month at John Pye Real Estate with 20 properties either deposited or leased.

Rental supply has been increasing over the last 4 months.  Increasing supply and average demand have resulted in lower rental prices in November. Now, lower rental prices have had the effect of increasing the demand in the marketplace.

Salient factors explaining the increased supply include:
  • The abundance of new developments released to the Sydney market
  • ‘Would-be vendors’ who are discouraged by the sales market are now renting out their properties
  • Renters are now buying property due to lower purchase prices and extra supply of sales listings

Tenant demand is based on high expectations due to the standard of living in the suburbs served by John Pye Real Estate. Thus, the greatest demand for rental property is at the upper end of the market.

Premium rental prices are still being achieved for clean, well presented, modern properties – units, apartments, granny flats, townhouses and houses.

Factors influencing the management of property includes:
  • High level of tenant care is reflected in the fact that almost all tenants treat their property as if it was their own. Disputes over property condition at the end of a tenancy are rare
  • Strong employment levels (4% unemployed in Sydney, October 2018) means almost all tenants pay their rent on time
  • Tenants are responsible and honour their tenancy agreement. Hence, Tribunal Hearings are very rare
  • Landlords also honour their tenancy agreements and promptly respond to property maintenance requirements.

It is an excellent time to be an investor benefitting from a John Pye Property Management service.