The NSW property market is rebounding but some regions are soaring ahead of the rest
2020 was a year of anxious landlords and tense tenants, but the tide is certainly turning as rental markets flourish with low vacancy rates and increasing rents.
Following a year of high emotions, the property market in NSW is rebounding, with areas of the state clocking extremely low vacancy rates.
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According to REINSW, the Hunter Valley has seen vacancy rates as low as 0.4 per cent due to an increased demand from people relocating from Sydney.
This, in turn, has sent rents soaring, lifting demand across all property types.
Michelle McLean, senior property manager and compliance manager with LeahJay, explained that while certain areas have peaked, others have suffered rapid declines as the COVID disturbance shifted renter preferences overnight.
“In certain areas, we have seen great growth for owners in respect to rental return, but then in others we have seen higher vacancy rates (closer to the city), so the outcome is varied. I believe that the adaptability that the industry has had to adjust to is a bonus. Such things as virtual viewings, routines and zoom meetings just to name a couple,” Ms McLean said.
Looking back at the past 12 months and the challenges faced by property managers, REINSW’s residential property management chapter committee member Edith Byrne of No Bull Real Estate in Newcastle, opined that the effects of COVID are still ongoing.
“[They] will be for a while, so let’s look at where positivity can be brought back into the market – and the industry. The light has shone for us all to move forward, the darkness is now gone, so let’s get on with the job,” Ms Byrne said.
“In the beginning we were just asking ourselves, ‘So, what do we do?’ We had to shut our office and lay staff off. It was horrific for everyone, and of course we had tenants losing jobs, too. But our landlords had mortgages to pay. It was a very challenging year physically and mentally,” she noted.
But the overall sentiment, she said, is that it’s time to get back to work.
“When I’m out there talking to other property managers, I feel what they’re feeling, ‘Oh, we’re in a rut because of COVID’. But I say, ‘Come on, guys! Let’s get back to it!’” she concluded.
