Sydney Real Estate Rental Property Market Report June 2009

<h1>Sydney Real Estate Rental Property Market Report June 2009 - Just Rent Sydney Real Estate Agency</h1>Author: <a title="Just Rent Sydney" href="http://www.articlesbase.com/authors/just-rent-sydney/164181.htm">Just Rent Sydney</a> Despite a slight softening of rental demand for the Sydney real estate market, yields are still high and demand remains strong. Property investors are beginning to return to the Sydney housing market, lured by high yields and low interest rates. The current reserve bank of Australia cash rate stands at 3%, a 60 year low. The rapid and dramatic slashing of interest rates earlier this year has been very favourable to property investors. Mortgage repayments have been reduced by up to half for some investors, helping to bump up the total yields on their investment properties. This favourable environment has been luring savvy investors back into the Sydney property market. For the first time in a long time there are opportunities for positively geared property in the Sydney real estate market. Median Weekly Rents Sydney Units Houses Unit Yields House Yields April 08 $380 $390 5.05% 4.15% April 09 $410 $450 5.47% 4.49% The current average weekly rent for Sydney houses stands at $450 per week (up from $390 a year ago) a rise of 15.4% year on year. The average weekly rent for units is currently $410 per week (up from $380 a year ago) a rise of 7.9% year on year. This gives an average gross yield for house and unit of 4.49% and 5.47% respectively. Despite these strong figures, there are signs of a slowing of rental growth over the last quarter. This slowing has been driven by an increase in renters becoming property buyers given the rise in housing affordability, lowering of interest rates and increased first home owners grants. Landlords are also no longer in a situation were they request their tenant to cover any raised interest rate repayments, reducing the pressure to consistently raise rents. However, this slowing is predicted to only be temporary given the large undersupply of housing in Sydney and an overall pend up demand for accommodation. The Sydney rental market is currently in a period of transition with several factors creating an unusual market situation. This is bound to stabilise soon, the major factor that will return the market to normality will be the reduction in the governments first homeowners grant due later this year. For now we are in an unusual situation were it is a great time to be a property investor given the current interest rate environment, and renters are also enjoying a reprieve in rental pressures. <a href="http://www.justrentsydney.com.au" title="Just Rent Sydney Real Estate Agency">Just Rent Sydney Real Estate Agency</a> are a specialist property management agency based in Inner West Sydney. We offer an expert rental property service and have won real estate industry awards for our service. <a target="_blank" href="http://www.justrentsydney.com.au">http://www.justrentsydney.com.au</a> About the Author: Just Rent Sydney Real Estate Agency are a specialist property management agency based in Inner West Sydney. We offer an expert rental property service and have won real estate industry awards for our service.

<a target="_blank" href="http://www.justrentsydney.com.au">http://www.justrentsydney.com.au</a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/real-estate-articles/sydney-real-estate-rental-property-market-report-june-2009-just-rent-sydney-real-estate-agency-950794.html" title="Sydney Real Estate Rental Property Market Report June 2009 - Just Rent Sydney Real Estate Agency">Sydney Real Estate Rental Property Market Report June 2009 - Just Rent Sydney Real Estate Agency</a>

Despite a slight softening of rental demand for the Sydney real estate market, yields are still high and demand remains strong. Property investors are beginning to return to the Sydney housing market, lured by high yields and low interest rates.

The current reserve bank of Australia cash rate stands at 3%, a 60 year low. The rapid and dramatic slashing of interest rates earlier this year has been very favourable to property investors. Mortgage repayments have been reduced by up to half for some investors, helping to bump up the total yields on their investment properties. This favourable environment has been luring savvy investors back into the Sydney property market. For the first time in a long time there are opportunities for positively geared property in the Sydney real estate market.

Median Weekly Rents Sydney

Units

Houses

Unit Yields

House Yields

April 08

$380

$390

5.05%

4.15%

April 09

$410

$450

5.47%

4.49%

The current average weekly rent for Sydney houses stands at $450 per week (up from $390 a year ago) a rise of 15.4% year on year. The average weekly rent for units is currently $410 per week (up from $380 a year ago) a rise of 7.9% year on year. This gives an average gross yield for house and unit of 4.49% and 5.47% respectively.

Despite these strong figures, there are signs of a slowing of rental growth over the last quarter. This slowing has been driven by an increase in renters becoming property buyers given the rise in housing affordability, lowering of interest rates and increased first home owners grants. Landlords are also no longer in a situation were they request their tenant to cover any raised interest rate repayments, reducing the pressure to consistently raise rents. However, this slowing is predicted to only be temporary given the large undersupply of housing in Sydney and an overall pend up demand for accommodation.

The Sydney rental market is currently in a period of transition with several factors creating an unusual market situation. This is bound to stabilise soon, the major factor that will return the market to normality will be the reduction in the governments first homeowners grant due later this year. For now we are in an unusual situation were it is a great time to be a property investor given the current interest rate environment, and renters are also enjoying a reprieve in rental pressures.

Just Rent Sydney Real Estate Agency are a specialist property management agency based in Inner West Sydney. We offer an expert rental property service and have won real estate industry awards for our service.

http://www.justrentsydney.com.au

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/real-estate-articles/sydney-real-estate-rental-property-market-report-june-2009-just-rent-sydney-real-estate-agency-950794.html

Article Tags: Real Estate, Property, Management, Rent, Investment, Rental, Market, Agent, Sydney, Agency, Manager, Manage

Related Videos
Related Articles
Ask / Related Q&A

Play

Real Estate Investing Tips - Trends Part 3

Play

Learn about Selecting a Real Estate Agent

Play

Real Estate Marketing Tips - Part 3

Play

Real Estate Marketing Tips - Part 2

Play

Real Estate Marketing Tips - Part 1

Latest Real Estate Articles
More from Just Rent Sydney

Valle de Bravo Real Estate offers Culture and Tradition in the Annual "Festival of Souls"

By: Thomas Lloyd | 11/11/2009
Valle de Bravo Real Estate offers a relaxing ranch - life style or a the provincial atmosphere of a traditional, small Mexican town. While these are the main factors that contribute to people buying in Valle de Bravo, offers an excellent blend of cultural activities which bring a pleasant variety to the area's lifestyle.

Cancun Real Estate offers Mexico Beachfront with Infrastructure Improvements at their Best

By: Cyndi Ader | 11/11/2009
Cancun Real Estate offers one of the best beachfront options not only in Mexico, but on an international level. One of Cancun's strengths is its continuous investment and efforts in keeping up the city's visual appeal and practical usability of infrastructure to high standards. Mexico Beachfront living in Cancun offers high quality in a prime location, and the city government supports this lifestyle with ongoing improvement projects.

Puerto Vallarta Real Estate - Government Cooperation and Investment

By: Jim Scherrer | 11/11/2009
Puerto Vallarta Real Estate is a prime example of how the attractiveness and value of properties can be improved by a high level of cooperation between various governments of different levels. In addition to inter-municipal cooperation in government investment in the area, there has also been "inter-state" cooperation. The cooperation of the governments involved, and the high level of investment included has made Puerto Vallarta one of the prime destinations for retiring in Mexico.

Playa del Carmen Real Estate Offers Excellent Investment Choice, as Area Continues to Receive Strong Private and Government Investment

By: Thomas Lloyd | 11/11/2009
Playa del Carmen Real Estate have one benefit, is the excellent potential the area shows for investment opportunities. The strong tourism industry, which has stayed on its feet during the recession, and the continued attractiveness of the area as a place to visit and live. The buyers that an investment in Playa del Carmen Real Estate is a solid investment, one that will be backed by excellent infrastructure, ongoing improvements and continuous offering of more services.

Staging Homes for Sale – Don’t Forget the Yard

By: Mark Ferrer | 11/11/2009
An excellent curb appeal has a great effect on the selling of your home. Homebuyers generally like homes that are situated well and features breathtaking yard appeal. But if broken branches, overgrown lawn and unkempt shrubberies welcome your buyers, they’ll surely think twice before even entering your home for sale. So after cleaning and de-cluttering the interior of your home, don’t relax yet, you still have some work to do – the yard. Here are some tips to help you stage it excellently.

Reasons to Lease a Residential Miami Rental Property

By: Mark Ferrer | 11/11/2009
It’s common knowledge that leasing is the more affordable alternative for homeownership. For some people, saving money to buy a house gets harder and harder as prices for regular commodities spike, although home values drop. If you’re fresh out of college and looking for a place to live aside from your parent’s house, apartments are probably the most advantageous options. In Miami, the right Miami rental property can help you adjust to your newfound independence.

4 Reasons to Buy a Miami Beach Real Estate Property

By: Mark Ferrer | 11/11/2009
If you’re itching to purchase a Miami Beach real estate property of your own, and have managed to save enough for the down payment and other expenses, now is a good time to carry out your plan. The current clamor in the real estate market is not without its reasons. And if you’re looking for validities in order to push through your plans to buy a home, read on and discover.

Miami Luxury Homes: Buying Rules from the Past That Are Making a Return

By: Mark Ferrer | 11/11/2009
“History repeats itself first as a tragedy, second as farce.” Karl Marx famously said this maxim and 21st century homebuyers can definitely learn something from it. The recent housing bust has brought in some golden wisdom that has been long forgotten ever since the boom in the real estate market. Now that we are experiencing a downward spiral in home values, it’s time to wince at new extravagant practices and welcome forgotten home-buying rules.

Sydney Real Estate Rental Property Market Report June 2009 - Just Rent Sydney Real Estate Agency

By: Just Rent Sydney | 03/06/2009 | Real Estate
Despite a slight softening of rental demand for the Sydney real estate market, yields are still high and demand remains strong. Property investors are beginning to return to the Sydney housing market, lured by high yields and low interest rates.