Atlas Market Insights

Now, more than ever, it is important to have an edge if you are a landlord in the rental market. Expertise and guidance are crucial in landing reliable tenants. Thom Richards , Co-Founder of property management tool Managed App , gives a comprehensive explanation of how to take advantage of investing in the current Sydney market. In 2020 we saw vacancy rates rise substantially, what’s happening now? Sydney’s vacancy rates were the highest they had ever been in 2020. The city’s vacancy rate ended on 3.9% last year but is now seeing a bounce back. Sydney vacancy rates for January 2021 were 2.9%, which is exactly the same as the vacancy rate in January 2020. This demonstrates increased confidence in the economy from renters and this positivity is likely to continue as the market strengthens throughout the year. It could also indicate a tightening of rental listings on the market. Many short-term rentals, such as Airbnb listings, marketed themselves as long term rentals during the pandemic, increasing the supply of rental properties and therefore, the vacancy rate. With interstate travel opening up, these properties are now returning to short-term rentals, and in part have helped the recovery of Sydney’s vacancy rates. How are rental returns performing? Rental returns in inner city properties have dropped by 20% on average, which is a considerable drop. Rental yield in Sydney was 2.9% in January 2021, below the national average of 3.6%. However, this can be expected to increase as rental supply and vacancy rates tighten, and competition for rental properties becomes stronger. How can investors take advantage of Sydney’s rental market? INSIGHTS - INVESTMENT 20