Sydney Real Estate Outlook
Sydney and the New South Wales district is beautiful, a destination of dreams for global travelers wishing to sample the lifestyle and unique economy of Southeast Australia.
Yet with sudden appearance of the Corona Virus, the Australian housing market has been weakened and only expected to return to normal in 2021.
Despite the horrible consequences of Covid 19, home prices in Sydney have shown to be very resilient. It might be far from economists and housing experts predictions back in 2019, but it’s allaying panic from Aussie property investors. It might be time to enlist the services of a professional property management company in Sydney.
Sydney Home Price Outlook
House prices in Sydney and Melbourne have fallen from July, yet are up year over year. Brisbane, Melbourne and Sydney are suffering from the effects of the pandemic and from some migration of renters out of the inner city. As dire as it appears for 2020, the rate of decline in dwelling values is decreasing. 2021 might be when most real estate investors jump back in.
If you’re investing in a home or rental property, you may be seeing prices at their lowest. Long term investors might get their opportunities with a surge of new listings last month.
It’s Not Just Sydney where Prices are Sliding
Australia’s housing market is highly fragmented with some markets showing their own unique demand and supply dynamics however will they be next?
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Optimizing Operations to Survive
Australian property managers will be focusing streamlining operations and attracting and retaining tenants. Now more than ever, Australian property managers Sydney, Perth and Melbourne are having their businesses tested to the extreme.
With Australian rents falling, vacancies and evictions rising, and cash flows interrupted, property managers will be under big pressure to maintain ROI and keep owners happy. Good software is one way to deal with it. The rest is strategy in creating property management leads, improving rent yields, and tenant retention.
With a glut of apartments being introduced, slowing immigration, and the slowdown in the economy, landlord and property managers have to reorganize. Hopefully you won’t be laying off staff, and new Proptech solutions can streamline and optimize your accounting, payment process, and maintenance ticket system to free up time.
Rent Prices in Sydney Plummet
News.com.au reported that desperate landlords in Sydney were offering tenants up to 4 weeks free rent just for signing new leases. Since then vacancy rates have climbed so we’re waiting a report on the concessions and incentives being offered now in September.
Those hoping to renegotiate their leases will find a greater variety of offers and incentives as landlords try to hold onto their tenants.
As you can see Melbourne rents are dropping. We have to wonder if renters are moving to Brisbane and Perth instead.
The time to rent an apartment in Sydney or Melbourne has dropped sharply. The fear of Covid, vacating, and work from home are contributing to big changes in the Australian rental market. Rental houses on the other hand are in rising demand. It’s a typical trend seen in the US and UK.
Comparing to USA Rent Prices
The price of apartment rentals in Australia is low compared to US apartment prices, but in terms of percentage declines will be just as painful to property investors and property managers. While many regions have seen their rents rise strongly, New South Wales rents are flat, as well as being the priciest in the country.
Complicating the picture may be the movement of those selling their homes to rent an apartment. Good for you as a property manager, however you may still need to offer incentives, free rent, and other inducements.
Predictions for Australia’s Diverse Housing Markets in 2019
What are the predictions for the Australian housing market in 2019? Will the economy see a hard landing, and collapse of the housing sector? The OECD believes an Australian housing crash is possible and are warning of a dire situation for Australian banks. Trade wars between the EU, USA and China could send bigger ripples to Australia.
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See also: Australian Housing Market 2021 | Australian Property Management | US Housing Market | Property Software | Apartment Rental | California Housing Market | Best Cities in California | US Rental Market | Property Management | Australia Property Management | Australia Housing Market Outlook | Sydney Australia Housing Market | Property Management Leads | UK Property Market | Oakland Housing Market | | Phoenix Housing Market | Las Vegas Housing Market | Property Management Companies | Property Management Apps | Rental Housing Market | Property Management Software 2021 | Best Property Management Software |