Sydney’s rental market cools off

Sydney’s rental market is cooling. Picture: NCA NewsWire / Jeremy Piper

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Sydney’s rental market is cooling, with the largest rental declines observed across the Fairfield, Lane Cove, and Woollahra councils.

These municipalities have recorded a 9 per cent price gap between recent lower asking prices and prior official bond lodgements, according to research published last month by Megan Lieu, economic analyst at REA Group.

It could possibly widen further given last October’s laws to limit rent increases to once per year.

The downturn is obvious with the rental listing of the glamorous Darlinghurst apartment of international celebrity photographer Darryn “Mr Paparazzi” Lyons returning this month to the market.

The furnished two-bedroom, two-bathroom apartment with car space in the Harry Seidler-designed Horizon high-rise at 1502/184 Forbes St, was listed this week with an asking rent of $2500 per week through Melissa Savi at First Hand Property. It was reported last July that Lyons, who bought the apartment off the plan in 1998 for $604,000, had sought $3500 a week.

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The asking rent for this Darlinghurst unit has dropped $1000.

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DEDICATED TASKFORCE FOR RENTERS

Meanwhile, renters across NSW now have a dedicated rental taskforce to hold landlords and property management agents to account following the state budget last June.

NSW Fair Trading’s Rental Taskforce will conduct compliance activities with “inspections, audits, and blitzes” to prevent and act on breaches of rental laws. With resources drawn from NSW Fair Trading, it will report to the NSW rental commissioner, Trina Jones.

One of its three key priorities is ending solicited rent bidding although that issue appears to have passed given the new data shows that the market is starting to shift in favour of renters.

Tenants were typically paying less than the advertised rent prices in 23 out of 34 of Sydney’s local government areas, Lieu noted.

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Renters now have a dedicated taskforce Picture: NCA NewsWire / Jeremy Piper

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When it comes to less seasonal occurrences, the taskforce is also implementing renting reforms to prevent no grounds evictions and also ensuring improved responses to repairs in the rental market.

Better Regulation and Fair Trading Minister Anoulack Chanthivong recently noted more people are renting, and they are renting for longer.

There are 2.3 million renters in NSW.

“Our inspectors will be out in full force to ensure real estate agents and landlords are complying with new and existing rental laws to ease the stress placed on renters by things like no grounds evictions and rent bidding,” he said.

He noted the majority of agents and landlords had been doing the right thing.

Leo Patterson Ross, NSW Tenants Union chief, said it was vital that such an important essential service as renting homes “has an active and visible regulator to hold people to account for failing to deliver a fair renting experience”.

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