Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Friday, 15 May 2015

Sydney property - oversupplied?

Rental growth in Sydney

Last week I took a look here at the level of stock on market for Sydney, which is wretchedly tight.

Vacancy rates are low in most, though not all, inner suburban locations.

Another indicator we can look at is rental growth.

At this stage in the cycle with many investors entering the market, theoretically rental growth should be very soft, or perhaps non-existent.

CoreLogic-RP Data shed some further light in this piece on Property Observer.

Over the past five years rental growth in Sydney has been robust.

Over the last 12 months house rents are recorded as rising by 3.9 per cent, and units by 2 per cent. 

At the regional level, decent rental growth has been seen in the inner suburban markets over the past five years.

This appears to be continuing, although the inner west may be showing signs of slowing.

Source: CoreLogic- RP Data