Northern Beaches Rental Market Update

9-7 QC RD 4

The Vacancy rate on the Northern Beaches remains in the low 1% band with demand for rental properties extremely strong. We expect this to continue which will support rents continuing to increase over time although increases are likely to be less than we have seen over the last 5 years.

Supply and demand is the main driver of rents with rents fluctuating throughout the year due to increases in demand in the summer months and a slight decrease in demand approaching the winter months. Should there be a significant increase in the supply of property this may put downward pressure on rents until supply is absorbed by the market, however this is unlikely to occur unless interest rates remain low and developers ramp up developments.

On this note there is development applications for 1000 new apartments in Dee Why alone for 2014. In Manly the opportunity for new supply is limited therefore reducing the risk of supply outstripping demand. More important than taking a Macro view you should concentrate on selecting the right property for an investment. Try to find a property with an internal laundry, natural light and parking and you will always have tenants competing for your property.

For further advice on the rental market contact us on 0424006855.

About Tim Cullen

Since joining McGrath Estate Agents 15 years ago, Tim Cullen has defined himself as a first class industry leader with an outstanding track record and rapidly growing and loyal client base. He ranked 1st on the Northern Beaches in this year’s Real Estate Business’ Top 100 Agents List and ranked 21st nationwide.

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