Green Square Blog

Rental yields have been strong in recent times in Green Square, despite the large supply flowing onto the market.

Zetland has topped the region for gross rental yields, with CoreLogic figures showing a 4.5 per cent rental return on a healthy median price of $860,000. This means apartments are leasing for a median of $740 per week in the suburb.

Alexandria is the next strongest with a 4.3 per cent yield, followed by Waterloo with 4.2 per cent and Rosebery with 3.8 per cent.

The local market has performed well compared to greater Sydney's overall apartment yield of 3.8 per cent, especially taking into account the market has hit its price ceiling recently, making good returns hard to come by.

But the wealth of stock becoming available has begun to slow the rental market and we have more vacancies than in the past. I am also noticing less people coming through open rental inspections on a Saturday afternoon. Some of this is seasonal, because there are always less people wanting to pack up and move places when it’s cold and rainy like it has been, but a lot of it also has to do with stock coming onto the market.

The upside for tenants is more choice, with plenty of good quality options to choose from, but owners need to be smart. If you price your rental correctly you will get a tenant, but remember they won’t be paying extra to compete with a market anymore.  And rents can’t always go up when leases are renewed. Keeping good tenants can save you money. If you are hanging out to increase your rent by $10 a week, that adds up to $520 a year, but if they leave and the property sits vacant for a couple of months, that will cost you thousands and also some good former tenants.

So get your rent right and tenants will still be attracted to what makes Green Square popular; the quality apartments in close proximity to the city and educational institutions.

The demographic in the area is mainly young professionals with a bit of extra income, who are happy to pay fair rent for quality, while there are a lot of students here too. People are also happy to pay for facilities like swimming pools and gyms. A lot of the new buildings don't have them, but people want them.

Good two-bedroom, two-bathroom units with a parking space are currently getting between $780 and $810 a week. A one-bedder will fetch $530 to $550 without a parking space, but between $630 and $650 with one.

Below is a snapshot of the Green Square area across the sales and rental market.  

 

Published by Trevor Back

Principal, Raine & Horne Green Square

Phone: 0428 006 900

[email protected]

 

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