A HOUSING under-supply in The Shire is driving rental demand skyward as agents struggle to cater to a swell of leasing enquiries.
Lifestyle and convenience are the driving factors as an increasing number of people seek permanent accommodation across The Shire.
According to leading agency Newton Real Estate, houses in the $600 to $900 per week bracket are in the highest demand.
Principal David Newton, said with demand exceeding supply, the market for established homes and rental accommodation is under pressure.
?With regards to any houses up to $750 per week, they will walk out the door,? he said.
?While a surge in unit enquiries has abated, houses close to amenities are in hot demand. Our rental department cannot keep up with the enquiries. The Shire has so much to offer and people are either returning after living in investment properties out west or discovering the place for the first time and not wanting to leave.
?Most of our new tenants are from within The Shire and upgrading their standard of accommodation, while a growing trend is also coming from the St George area.
?The Shire presents a great opportunity for astute investors to reap the rewards of a strong rental market.?
David Newton said new tenants are prepared to pay upwards of $70 per week extra for a pet, as landlords continue to reap the benefits.
?We are not surprised as The Shire delivers all the best Sydney has to offer; famous beaches, iconic waterways, rich bushland and memorable experiences,? he said.
While unit rents have dropped by 5 per cent on average, rental returns on houses remain solid.
Figures from RP Data-Rismark Home Value index showSydneyrents increased 6.8 per cent for houses and 5.1 per cent for units last calendar year, one of the highest rates of rental growth across the capital cities.
A housing under-supply across NSW is playing a crucial role inSydney?s housing market buoyancy. According to the Federal Government?s National Housing Supply Council, NSW accounts for about 40 per cent of the national housing under-supply. It is estimated NSW needs 73,700 additional dwellings to satisfy housing demand.
According to the Urban Taskforce,Sydney?s undersupply of housing is forecast to double to 80,000 by 2014.
While the population of NSW has grown consistently over the past decade, the rate of new homes being built has failed to keep pace.
Based on population and demographic projections prepared by the ABS (Australian Bureau of Statistics), the Housing Industry of Australia (HIA) estimates that NSW will be home to an additional 412,300 households by 2020.
David Newton said the market in The Sutherland Shire, just 25km south of the CBD and only 20 minutes fromSydneyAirport, is buoyed by strong international migration and reduced net interstate outflows.
?Underlying housing demand is running well ahead of new supply and this gap is expected to widen in the years ahead. As a result we will continue to see strong rental yields and short supply in the medium to long term,? he said.
Newton Real Estate is focused on providing clients with the best possible results by a committed team driven by ethics, team work, systems and technology.
The entire team at Newton are committed to earning not only your current business but your future custom and the recommendation to your friends and family. For that we feel we need to exceed your expectations.
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