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Vacancy rates in lower north shore Sydney

Discussion in 'Real Estate' started by Jacque, 21st Mar, 2007.

  1. Jacque

    Jacque Team InvestEd

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    You've all no doubt heard and read about Sydney's impending "rental crisis" recently, including the most recently released vacancy rate for Feb 2007 of just 1.4% (Source: REINSW)

    However, unless you're in the market it's hard to know where exactly and what type of properties are being affected. Attended a pre-purchase inspection with a client this morning in North Sydney and have noticed a distinct lack of available rentals in the lower price bracket ($250-400) for this area recently- was actually chatting with the REA who told us that when he opened up a small 1 bedder on the weekend for rent he collected a whopping 26 applications during the first open!! :eek: That's the highest I've ever heard for some time- the easy days of negotiating rents in this part of Sydney in this price range are long gone for now, so it seems.

    He also informed us that if this particular unit we've found on behalf of our client was advertised at $320 today, he'd have a good tenant within the hour ready to sign a 12 mth lease. Our owner client is intending to use it as a city crash pad so couldn't care less. It's still interesting to find this information out, however.

    It seems that 5%+ gross yields are on the increase, particularly in the lower price bracket (this unit cost $298K and would return 6% gy) so it's good news for investors wanting a piece of Sydney real estate at the moment. Mind you, the tide does appear to be turning with increased interest, even in the unit market. Units may not have the same land value as freestanding houses but the location can often affect growth in the same way over the longer period simply due to supply and demand.

    People still want to live close to work in Sydney, and if this means investing (buying or renting) in a unit because this is all that is affordable, then they will take this option. When you consider that you can still pick up a nice unit (with a real bedroom and not just a studio) in this terrific part of Sydney for under $400K and achieve a 5-6%gy then it's not all bad :D

    Now if I could just get Steve to agree to a nice little number I have my eye on in Waruda St, Kirribilli, for our own city crash pad.....:D
     
  2. unthreaded

    unthreaded Active Member

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    Need help on Sydney Real Estate

    Hi Jacque,

    Hope you'll let me pick your brains. My Daughter is taking a position in Sydney and we are desperately trying to help her - short term and long term. That is, how do I get reasonable deals on 2 1/2 week short term accomodation while we try to find long term lease or buy.

    Our problem is that living in regional WA, we dont even know the suburb names in Sydney, let alone the rental/investment values.

    In short, how do I start??
     
  3. Nigel Ward

    Nigel Ward Team InvestEd

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    Whereabouts will your daughter be working? In the CBD or elsewhere.

    That will, at least in the short term, guide where she wants to live I would think.

    Perhaps the Sydney InvestEd'ers could then give you some guidance on suburbs, transport links etc.

    Once we have that info, perhaps we can fire back some suburbs and general lifestyle related comments which can help narrow your searching on realestate.com.au and domain.com.au.

    With respect to short term accommodation there are plenty of short stay rentals but they generally require you to take at least a month. I had to look into this recently for some interstate rellies, so if you give us some more info I'll try to dig up the relevant contacts.

    Cheers
    N.
     
  4. iiinvestor

    iiinvestor Well-Known Member

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    If in the CBD, I'd recommend Kirribilli, North Sydney, McMahons Point, etc. Within walking distance of a ferry wharf is always great, but if that's a stretch, at least near a train station. There are a lot of steep hills around these areas, so while it's good for fitness, it may be a pain if she has young children or if she's immobile. It really is a great area though, IMHO.

    If she's relatively young, a studio/1 bdr in McMahons Point or Kirribilli would be the pick of the bunch. One ferry stop away from the CBD, close to local shops, a walk to Milsons Point and Nth Syd stations, and a nice small harbour suburb atmosphere.

    Anyway, just my opinion and I am heavily biased. :)
     
  5. Nigel Ward

    Nigel Ward Team InvestEd

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    Further to iiinvestor's points, the lower north shore is a great area. But I'd move a bit further north than Kirribilli/Milsons Point to the Crows Nest/St Leonards area. Better shopping/cafes and still on the train/bus routes.

    Cheers
    N.
     
  6. Jacque

    Jacque Team InvestEd

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    Hi unthreaded

    Nigel's right about the short term accommodation and even for 2-4 weeks they do tend to be pricey. Check out this site for more info that my prove helpful: Budget accommodation Sydney, self catering, short term & temporary Sydney budget accommodation Also this one is good, or so I've heard:
    Furnished Apartments, Holiday Homes & Corporate Accommodation in Sydney Melbourne Brisbane & Australia with Rent-A-Home.com.au

    Give us some more specifics, however, and we might be able to help you further. By the way, I enthusiastically second iinvestor's recommendations of the lower north shore area- I love Kirribilli and McMahons Point- just amazing suburbs so close to the city!
     
  7. Jacque

    Jacque Team InvestEd

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    You're just biased because you're a local, Nige :D

    Though I must say good old Crows Nest has some fab eateries......!!
     
  8. unthreaded

    unthreaded Active Member

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    Ok - She will be working in Miranda, starting 11th April. We've booked the short term accomodation until the 26th (hopefully enough time to find something more permanent). I'll be joining her from 19th to do most of the looking while shes at work.
     
  9. FrankGrimes

    FrankGrimes Well-Known Member

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    Well if she's working in Miranda the lower north is about 30-35 kms away, and few changes of trains to get there. I would suggest Cronulla or Caringbah, which is two trains stops from Miranda. Cronulla or Caringbah is about 45-50 minutes to the City by train. Have a look at Cityrail.info (this will give you an idea of where the suburbs are)

    Don't let the Cronulla riots turn you off. But if it does, neighbouring Caringbah is great. I've lived in lots of different places over Sydney and Caringbah was probably my favourite. But my work moved North and so did I :)
     
  10. Jacque

    Jacque Team InvestEd

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    So where did you book the accommodation for? Somewhere near Miranda, I trust, as it's a fair way south of Sydney's CBD. I personally wouldn't like to commute that far for work on a regular basis.
     
  11. unthreaded

    unthreaded Active Member

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  12. Jacque

    Jacque Team InvestEd

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    No worries :)
    Hope it all goes well for your daughter.