Thursday 10 May 2012
Rental yields continue to rise in pockets of Sydney
Despite the uncertain market, rental yields have been rising steadily for one and two bedroom units in several areas of Sydney.
Campbelltown, Fairfield, Liverpool, Maitland and Canterbury rents for one and two bedroom apartments were found to have grown the fastest in the Sydney Greater Metropolitan Region since 2006, according to PRDnationwide.
Research analyst for PRDnationwide, Oded Reuveni-Etzioni, explained that those profiting from this increase are the investors who have done their research previously.
“Savvy investors are attuned to the changing preferences of renters and recognise the growing rental markets in the middle and outer suburbs of the metropolitan area,” Mr Reuveni-Etzioni said.
“Investment opportunities also exist in areas outside the metropolitan area, where strong demand and limited supply of units maintains the pressure on rent prices,” he said.
The highest growth in demand was recorded in the Ku-Ring-Gai LGA.
“The number of bonds held in the Ku-Ring-Gai LGA more than doubled since 2006,” he said, with an average increase in new bonds lodged of 22.6 per cent per annum.
Demand was also recorded in the Cessnock and Maitland LGAs, which Mr Reuveni-Etzioni said was the result of large infrastructure projects drawing in workers in the construction sector.
“This indicates a shift in tenant demand from inner to middle and outer parts of Sydney Metropolitan Area.”
The highest rent prices were seen in the City of Sydney, where one bedroom units charged an average $500pw, while two bedroom units were recorded at $670pw.
Other LGAs with high rental prices included Woolahra, Canada Bay and North Sydney.
PRDnationwide research included medium and high density dwellings in the Sydney Greater Metropolitan Area, including the Hunter and Illawarra.