Renters finally get the upper hand in Sydney as lockdown leaves 30,000 properties vacant and asking prices drop - even in some of the city's most sought-after suburbs
- A drop off in migrants and overseas student leaves a hole in Sydney real estate
- Rental vacancies in Sydney now the highest ever levels during the pandemic
- The oversupply means good news for renters after decades of soaring prices
After decades of soaring rental prices Sydney's long suffering tenants are finally getting the upper hand.
A massive drop off in migration and overseas students has left rental vacancies at their highest ever levels during the coronavirus crisis.
With so many empty properties and the unemployment rate also accelerating, real estate experts say rental prices are likely to fall even further, giving renters the upper hand over struggling landlords.
Long-suffering Sydney tenants are finally starting to see some relief after decades of soaring rental prices
There are currently 30,000 homes and apartments sitting vacant in the Harbour City.
The majority of them are in the more exclusive and sought-after suburbs.
Over 7,000 apartments are currently available in Sydney's CBD and eastern suburbs.
There are 4,000 places to rent in the trendy inner-west, 3200 available in the greater Western Suburbs and about 900 in the Canterbury-Bankstown area.
'There is plenty of choice and downward pressure on rents, these are good times to be a tenant,' Dr Andrew Wilson, chief economist with My Housing Market, told 9News.
'There's really no sign that we are going to see an easing in new supply or an increase in new demand that will soak up these numbers.'
Sydney's CBD has seen the largest decline in rental prices with apartments dropping from an average of $828 in 2019 to $690 during the pandemic.
The 16 percent drop in the city was followed closely by a 13.9 percent slump in Pyrmont and a 13.7 dive in Mascot.
There are currently 30,000 homes and apartments sitting vacant in Sydney as the number of potential tenants dries up
With the unemployment rate also soaring due to the COVID-19 pandemic, real estate experts say rental prices are likely to fall even further. Picture: Long queues are pictured at Centrelink in Sydney's Darlinghurst
Although property investors and landlords are facing greater financial strain as the number of potential tenants dries up, some property analysts say the problem could be worse.
'It does look like rental markets are highly fragmented', Tim Lawless of CoreLogic said.
'But it's certainly not falling off a cliff.'
'We will probably see more urgent sales coming into the marketplace.'
Despite the doom and gloom for Sydney's property investors, real estate prices have actually risen in one area.
The average property price in Paramatta has increased by 4.4 percent during the pandemic.
A massive drop off in migration and overseas students has left rental vacancies at their highest ever levels during the coronavirus crisis
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