Rental prices in Sydney are expected to continue slipping as vacancy rates reach a 13-year high.
A report by property analysis firm SQM Research found that 2.8 per cent of Sydney’s rental properties were empty in June, increasing by 0.3 per cent from May and almost a full percentage point from a year ago.
SQM’s managing director Louis Christopher said the figures could be attributed to the rising supply of new apartments and the easing population growth due to people’s move to cheaper cities and regions.
“Sydney rents are now down for the year and it is likely rents will continue to slip as there is still a lot of supply coming in the pipeline,” said Christopher in the report.
“I believe Sydney will shortly record a fall in its population growth rate due to a relatively recent steep rise in interstate migration towards Queensland.”
The buyers’ market is also cooling, with home prices falling by 4.9 per cent over the past year. According to CoreLogic, this is caused by stricter loan terms, increase in number of listings, and declining activity from local and offshore investors.
“I think this is the only time in my career that I can say with certainty that Sydney is now a buyer’s and a renter’s market, simultaneously,” said Christopher.