Inner Sydney apartment rentals on the rise: PRD Research
Sydney unit prices have recovered after the downward trend seen in 2019, according to the latest report by PRD Research.
Absorption of new and old listings has been very strong, it advised.
The inner ring 2021 median sale price sits at $1,050,000. It is $910,750 in the middle ring. The outer ring apartment median sits at $750,000.
The Sydney market update report divides the city into the inner-ring (0-5km from the city), middle ring (5-10km from the city) and outer-ring (10-20km from the city).
The middle ring saw the strongest price growth between 2017 - 2021 of 5.7% (+$48,750), just ahead of the outer ring's 5.6% growth (+$40,000).
The inner ring price growth over the four years was 4% (+$40,000).
The inner ring saw the highest required vendor discount of 2%.
Sydney’s inner-ring units have returned to selling faster than middle-ring units.
Despite a prolonged lockdown period in 2021, Sydney units are taking less time to sell in Q4 2021 compared to the initial COVID-19 lockdown in Q2 and Q3 2020.
Sales volumes for established units in 2021 were well above the levels seen over the past three years. it added, noting the data was from APM Pricefinder, SQM Research, and ESRI ArcGIS.
Rental volume has decreased since the beginning of 2021 for both houses and units, indicating an undersupply, the report noted.
The inner median rental price sits at $595 per week after annual price growth of 8.2% ($45 per week).
The middle growth was 3.9% ($20 per week) to $530 per week.
The outer median unit rental sits at $460 per week up 2.2% ($10 per week).
Due to median unit prices not seeing the same price growth in 2021 as houses, unit rental yields have increased in all Sydney rings.
Sydney’s inner-ring recorded the highest rental yield and the highest growth.
The latest inner city apartment project announcement comes from property developer Dahua Group with plans for its major Waterloo precinct.
The 1.7 hectare block, formerly an industrial site at 903-921 Bourke Street, Waterloo, will see four new buildings constructed, focused around a central plaza with retail and parks.
The tallest tower proposed with family-targeted terraces which address the park will have 147 apartments across its 20 levels.
