With lockdown mayhem somewhat behind us and price growth slowing, greater opportunities are showing up for many investors, provided they’re not looking for a quick capital return. Rental yields are improving yet there is still significant variability at the top end of the market. And although price growth is unlikely to be strong in the short term, Sydney’s population is starting to increase again which will underpin demand for property.
The Lower North Shore was relatively unscathed by the widely reported impacts of COVID on the rental market due its high earning demographic. In fact, what we saw was a trend where people were upgrading their properties. People wanted more space when stuck at home during lockdown. In that time, the challenge for tenancy was almost solely in the one-bedroom bracket. And now, the market is adjusting as the world opens back up and the impacts subside. The market struggling before (one-bedroom) is now moving quickly as people choose to downsize, having previously overextended themselves.
And that leads us to another market adjustment at the mid to high end range of properties. The positive amongst all these changes, is that nothing ever lasts forever, and we will simply adapt as the market slowly corrects itself. This adjustment is clearly seen across the variation in open homes across the Lower North Shore. At some open homes we have 24 groups going through, others will only have two groups. Those in the Lower North Shore are very fortunate to be part of a strong community where once you join, you never want to leave! There are always opportunities to move, keeping vacancy rates to a minimum.
We can’t talk about the ‘rental market’ in the Lower North Shore in general terms because each price bracket is behaving as its own market. Here’s a brief breakdown of how it currently looks:
$550 – $700 | 1 bedroom
$800 – $1100 | 2 bedroom
$1100-$2000 | Upper Mid-range
$2000+ | High-end
It’s no longer as simple as listing a property in a highly sought after area and getting the rental. At Ray White Lower North Shore Group, we customise our approach for the current market conditions, the properties available and the people looking. This helps us market properties appropriately, and to the right people! We work hard to get your property tenanted.
Here’s’ how:
What we’ve seen across the past 18 months is the market slowly adjusting from the impact of COVID. We know it’s not a general rental market, we know that each of our investors has a property in their own section of the market that we must treat accordingly. Here at Ray White Lower North Shore Group we are conscious that there is no one approach. Each property, each area, each investor, each tenant has a unique set of requirements that we must understand and deliver on.
Put simply, our goal is to get the right tenant in the right property. We recognise the market is always moving and changing and what was the challenge is not the challenge anymore. We must adapt and customise our approach for each property.
Contact Michelle to discuss how she and her team would tailor their strategy for your property to this market,
Head of Investor Performance & Growth
michelle.lucas@raywhite.com
0403 830 538
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