Apartment landlords within inner Sydney may have begun to gradually attract tenants again after slashing rents.
Figures from SQM Research showed the proportion of rental homes sitting vacant in the CBD dropped from a high of 16.2 per cent in May to 12.9 per cent in August.
The change in vacancies coincided with a plunge in rents – the average asking rent for units in the CBD over August was about 23 per cent lower than a year prior.
There were also about 700 fewer vacant properties across the Greater Sydney area in August compared to July, with the vacancy rate dropping from 3.6 per cent to 3.5 per cent. The vacancy rate was the highest among capital, despite the drop.
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Separate research from the Real Estate Institute of NSW showed vacancies across the Greater Sydney area decreased for the first time in five months.
Newcastle and Wollongong also had a slight easing of vacancies in August, as did many other regional NSW areas.
The Sydney CBD has the highest level of vacancies.
REINSW chief executive Tim McKibbin said landlords may have staved off vacancies by offering more enticing deals.
“Easing of vacancy rates across much of NSW may be attributable to landlords responding to the changed market conditions brought on by the COVID-19 pandemic,” Mr McKibbin said.
“With so many people experiencing job losses or reduced pay, many tenants have had to relinquish properties and go in search of more affordable options. Landlords faced with vacant properties are now, in turn, reducing weekly rents to entice tenants.”
SQM Research director Louis Christopher said drops in rent meant there were “leasing opportunities for tenants who have chosen to stay in town”.
Tenants may be starting to pick up on the chance to get a better deal, according to Finder.com.au.
It is still a good time for tenants to negotiate rent.
A recent Finder survey revealed 31 per cent of renters have moved or are considering moving during the pandemic.
Finder insights manager Graham Cooke said it was prime time for renters to negotiate a better deal.
“The reality is many Aussies are currently paying too much for their rent. If you’re in a position to move, now is the time to find a bargain,” he said.
Mr Cooke said those who didn’t want to move should consider asking for a rent reduction. He gave the following tips:
Assess your payment history: If you never miss a payment you’ll have better luck asking for a discount.
Compare rentals in your area: Check online for properties similar to yours in your suburb. If they’re being offered at a lower rent than you are paying, raise it with your real estate agent and use these listings as evidence for your claim.
Know your credit score: If you’ve got a good credit score that can help. Your landlord should be more enthusiastic about keeping you, and if not you have a higher chance of being accepted at a different property
Be polite: Most landlords in Australia are also paying off mortgages. If you want to maintain a strong relationship with your landlord it’s important to be gentle but firm with your case.
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