Rents may be growing across Sydney but tenants still have some bargaining power in 12 suburbs. See the full list
They’re the suburbs offering tenants refuge from Sydney’s rental crisis – where skyrocketing prices and long lines of home seekers at open for inspections have become the norm.
A report from rental review site Rent Rabbit shows there are 12 markets in Sydney and three in regional NSW where rents have dropped over the past year due to a rising number of untenanted properties.
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These ranged from housing markets in the Northern Beaches to unit markets in the south west, with some median rents dropping by more than 10 per cent since May 2021.
While most came from a low base, all of the markets recorded an increase in the number of properties remaining empty for 21 days or more after being listed for rent.
Data from SQM Research shows vacancy rates across Sydney dropped from 3.1 per cent to 1.6 per cent year on year in April, however, Rent Rabbit’s Better Renting report showed several markets bucked this trend.
The house market of Prairiewood in the Fairfield region experienced a 300 per cent increase in the number of properties staying vacant for three weeks or more, with the number rising from one to four and the median rent dropping 7.8 per cent from $510 to $470 a week .
Vacancies in the house market of Castlecrag in the lower North Shore increased by 200 per cent from one to three while rents dropped from $1,600 to $1,500 a week.
In the Northern Beaches suburb of Beacon Hill, the number of units remaining empty for three weeks or more rose 400 per cent from one to five, bringing rents down from $510 to $480 a week.
But while the number of prolonged vacancies has increased across the markets, available housing has remained relatively low.
Most markets in the list had fewer than 10 properties that remained vacant over a period of three weeks.
RentRabbit.com.au co-founder Ben Pretty said the lack of tenant-friendly suburbs in Sydney was concerning.
“Throughout much of Sydney, the data shows that vacancy rates are low, vacancy rates are
falling and rents are rising,” he said.
“Thankfully, though, there are some markets where vacancy rates are increasing and rents
are decreasing, which means tenants aren’t completely out of options.”
“That said, I am concerned about the future. Now that the international border has reopened,
Sydney’s population growth is likely to return to pre-pandemic levels. Unless we see a
corresponding increase in the supply of rental properties, the number of tenant-friendly
suburbs in Sydney is likely to decrease.”
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|Ranking||suburb||Market||No. of vacancies (May ’21)||No. of vacancies (May ’22)||Change %||Median rent (May ’21)||Median rent (May ’22)||Change %|
Source: Rent Rabbit Better Renting Report
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Originally published as The Sydney suburbs where rents are falling