lastere

The suburbs I'm following on the net dropped about $50 since November alone. that's about 15% in my price range.
Is it me or can any locals who recently moved confirm this?

ABCDiamond

What suburbs ?

I think the expensive areas of Sydney are dropping, but the cheaper areas still have strong demand for properties, and rents are still rising.

DrWho

Once you get beyond the REA bollox and realise the vacancy rates for many suburbs are 5% or higher you can see why the rents are dropping... Our Landlord has a very nice property overlooking Bungan Beach that they can't rent out... We haven't had a rent rise this year in Mona Vale... 2 months ago my wife looked at 3 properties over 2 days and at 2 of them she was the only viewer... Pick your suburb carefully and you could negotiate a good deal for yourself...

Geelong Gent

I think its true at the higher end of the market - the demand seems to be for middle of the market. Our landlord started the year wanted over $900 per week and by the time we arrived he was jumping over himself to accept our $700 for 2 years.

I would not accept the same when competing at the other end with students.

But in the middle it would depend on time place comes on the market, location, desirability, tenant history etc.

Swerv-o

Definitely true - My GF has just been informed of a rent rise of $30 a week on her apartment in Camperdown.

It's a reasonably spacious, new, 1 bed place with En suite bathroom and a space for a single car, now $450 per week.


S

The Flintstones

http://news.bbc.co.uk/1/hi/business/7733245.stm

I think it will be worse in Oz since house prices have increased the furthest, even further than USA, there are loads of new suburbs (anyone with house bought in past 3 years will probably lose house). It will be hard to hold back the tide after summer is over.

E3only

Not where I live mate. Demand still strong. Yes marginal drop can be expected but 15% - dreaming.

Which sub is this ?

pompeyblonde

I guess if demand drops its inevitable that atleast prices will stabilise? Hope so

Swerv-o

But in the USA there was a glut of housing - here housing is still very much in demand, particularly in CBD and coastal regions. People want to live near to the city or the coast, and there just isn't the housing infrastructure to supply that demand at the moment. I would predict a moderate fall in prices at worst.

It is also difficult to see how rents are likely to decrease when there are still 20-25 people showing up to inspect apartments for rent here in the inner west of Sydney.


S

ABCDiamond

I would have classed that as an expensive area !!

I'll have to increase my rents... Currently charging $270pw for a 3 bed house and $180pw for a 2 bed house, in Western Sydney.

ABCDiamond

I feel that the numbers of available properties is about to become a problem, especially here in QLD.

Looking at the new building developments in the pipeline, they are down by about 32% compared to last year..

In 2007, June to November, there were 25,194 new house approvals granted.
In the same months for 2008 there were only 17,128.
A 32% drop for QLD and that should be just about beginning to hit now.

That's 8,000 less properties that will available in Queensland, for a population that is still increasing at the same rate as before.

What will that do for the supply and demand structure of pricing ?

NSW has only reducing by 3,096, for the same comparative period, and South Australia's building approvals have actually increased.

If population keep increasing, but property building doesn't keep up, we will see more accommodation cost problems.

pingpong

where i live in Randwick rents have been the same for the past 2 years, $400 pw for 2 bed flat and my mate down the road in coogee has been paying the same for his -which is a nice modern 2 bed with big balcony and ocean glimpses! lol, for the past 3 1/2 years.

NickyC

Your mate is doing well. I have a flat down at the beach in Coogee. It rented for $520 pw last year (Nov 2007- Oct 2008) and went up to $540 in Nov.

E3only

Kidding, can I ask which sub is that ?

I live in western Sydney (Westmead) and the rent there for 3 bedroom unit (decent size & close -5-7mins walk- to station etc) is 400+. And this is my own place.

270 is dirt cheap. May be away from station or close to WestBus or something. It's a dream to have 270 a week 3 bedder mate, unless it's small size and away from transport.

Look up on domain and realestate. Also it can be misleading those sites as sometimes they advertise and when you go and check them - they are small old and far away from transport.

lastere

i'm looking at bronte/coogee 1BRs. was $350ish, now goes for $300.
maybe it's just me. in pics they look about the same standards.