- INCREASING COMPETITION IN SYDNEY’S RENTAL LISTINGS MARKET
- STRONG ANNUAL TOTAL RETURNS OF 16.7% TO ROUND OUT FINANCIAL YEAR
- SYDNEY DWELLING VALUES UP 13.3% OVER JUNE 2019
- RBA TO HOLD OFFICIAL CASH RATE AT RECORD-LOW 0.25%
Maintaining its bellwether status as Australia’s property market leader, Sydney’s resilient property market finished the 2019-20 financial year with strong gains. Annual returns came in at 13.3% and total returns at 16.7%, both well ahead of all other state capitals and the national averages. This was despite a small dip in June median property values of -0.8% on month to $875,749.
Sales activity continued to surge in June, up 29.5% over May, which was already up 21.5% over the April low. Preliminary auction clearance rates for the July 4 weekend were a healthy 66% with a median sale price of $1,215,000.
Residential rental vacancy rates show a bifurcated market: 2.4% for houses (down from 2.6% in May and 2.8% in June 2019) but 5.5% for units (up from 5.0% in May and 3.3% in June 2019). Median weekly asking rents were up 1.9% year-on-year for houses and no change for units ($530 and $500 respectively).
June 7 Statement – RBA to stay the course on record low interest rates
In a strongly-worded statement yesterday, RBA Governor Philip Lowe made it crystal clear that record-low interest rates are here to stay for years to come. “The board will not increase the cash rate target (0.25%) until progress is being made towards full employment…”
Adjusted for inflation, real cash rates in Australia are now negative. Cautious savers are now losing part of their principle to earn the sub-1% rates offered on most bonds and term deposits. At present, high interest rates are a luxury Australia simple cannot afford.
There will be winners and losers from this policy. Without an uptick in interest rates, it’s undeniable that savers will lose out to property investors over the medium to long term. Stability in the housing market is the foundation for any lasting economic recovery. With high unemployment and an uncertain economic recovery, the last thing policy makers want is weakness in the housing market. Record low variable housing interest rates for both owner-occupiers and investors are keeping a healthy bid in the property market.
Let V-Mark Design Photographers Capture the Lifestyle Benefits in your Rental Listing
Sydney’s property market is currently experiencing a noticeable increase in rental listings. Falling immigration and student arrival numbers come on top of short-term rentals (Airbnb etc.) being re-listed as standard leased accommodation. In May 2020, the portion of rental stock on the market increased to 4.5%, up from 4.3% in April. Apartments are the hardest hit with over 7000 units now listed in Sydney’s CBD alone and the same number again in outer suburbs.
The result is many more rental listings popping up, all hitting the market at the same time. It’s harder than ever for your listing to stand out from the crowd. Competition for good tenants has increased across the board. Bad photography and standard copywriting can mean no click-throughs, longer listing times, increased marketing costs, and significantly reduced returns.
THE V-MARK DESIGN ADVANTAGE
That’s where V-Mark Design can help. Our expert team of photographers and imaging specialists create memorable key photos of your rental property for critical online listing sites such as All homes and Domain. Often it comes down to one key photograph being the difference between a successful click-through or being lost in the listings.
Once the client has clicked-through to the full listing, they will find all the other photos are of equal quality. One bad photo in the series can deter a prospective renter. Virtual 3D tours, drone photography and clear copywriting are also available.
Prospective tenants are not investors or renovators. They choose the property strictly for the immediate lifestyle benefits the property will deliver them. At V-Mark Design, we understand that rental photography and copywriting should highlight these lifestyle benefits at every opportunity. With virtual furniture, our imaging specialists can turn an unfurnished property into the inviting home your prospective renter has always imagined.
Don’t leave your rental listing to chance. Call one of our marketing specialists to discuss your specific needs today.