New data released from Domain has revealed that the cost of renting in Sydney is much lower than it was five years ago, improving renters’ pockets across 55 suburbs.
The Domain Rental Report found that prices for houses and units have dropped by almost one quarter over the past year and prices are continuing to fall.
Despite this, the report also found that tenants are still finding it hard to get their foot in the door of available properties.
Domain research analyst Eliza Owen said house rentals dropped across two-thirds of Sydney suburbs in the year to September, while about 70 per cent had unit price falls.
In houses, Greenwich saw the most change, dropping 24.8 per cent, while units in the suburb of St Mary’s in Sydney’s western region experienced a drop of 14.3 per cent.
“It’s the strongest annual decline in about 15 years,” Ms Owen said to Domain, noting that the 2013-2017 investment boom had placed downward pressure on prices.
“[However], I do think we’re at a point where rents may start to go back up,” she added.
“[There’s] strong email inquiry for rental properties, the vacancy rate has trended down, and purchase prices are starting to rise, so landlords might seek stronger returns.”
Landlords in Greenwich have begun losing up to $340 per property, with the average rent now sitting at $940 a week.
In unit prices, the most advantaged suburbs for Sydneysiders looking to rent were in the west. After St Mary’s, Kellyville and had the biggest fall. Dolls Point and Lindfield reported the least decrease, with only a 7.7 per cent drop.
The report noted that despite agents and developers offering up to four weeks’ rent to get tenants through the door, finding a rental is still not easy.
Sydney remains the most expensive for apartment rentals and second priciest house rentals in the country.