The Australian property website Realestate.com has conducted research into what really drives rental demand in Sydney – and the results might surprise you.
According to the report, the suburbs located in Western Sydney account for almost a third of the top ten areas in terms of a significant shift in rental habits. In Bossley Park, the rental demand has increased by a staggering 258%, with over 1,200 people visiting each property which becomes available on the market. Wetherill Park follows closely behind, having increased by 124%, meaning that the area gets 1,436 visits per available property.
The report consisted of Realestate.com looking at the number of visits per day to properties across two separate six-month periods. Areas which had very few properties available on the rental market were excluded from the research.
What is very clear from the research is those different areas have very different drivers for the rental market. The REA Group's Chief Economist Nerida Conisbee said that the principle factor in rental shifts in Sydney was down to affordability. 'It’s really surprising how Western Sydney features in the top 10. So we’ve got Bossley Park, Wetherill Park and Guildford West – they’re pretty affordable and I think that’s a pretty big factor.'
Another area which has seen significant rental demand is the island state of Tasmania. According to Conisbee the reason for the demand is the growth in job opportunities in Tasmania and the housing demand is struggling to keep up with the expanding economy. She went on to add that investors should play close attention to these areas and build to meet the demand rather than investing money in luxury property in city centres – an area which is already saturated with foreign buyers.