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Rents fall in Sydney as property building increases

Sydney is one of the cities in Australia that is benefitting from a boom in the amount of property being built. New properties are sprouting all over the city and as a result the rents in the area are falling by a considerable amount.

In fact, rents have fallen in Sydney for the first time in three years, according to property website Domain.

As there is a multitude of new stock coming into the buying and leasing market, agents in high-density areas are discounting their properties due to heightened competition.

The result of this is that Sydney is becoming a much more affordable city in which to live, therefore it is sure to attract more renters, investors and potential buyers to the area.

The latest Domain Rental Report has shown that average monthly rent for an apartment in Sydney fell from $510 (£245) to $500 (£240), marking a two per cent decrease over the last quarter of 2015.

Speaking on the falling rates, Domain Group senior economist Andrew Wilson said: "This is the first sign that the record new supply from the high-rise boom is impacting the rental market."

House rental rates are also changing slightly in Sydney, during the same quarter they moved up slightly by 1.9 per cent to $530 (£255) a week, the rates look set to remain at this level for some time though, according to Domain.

Some investors are now looking to sell their units due to the necessity of having to lower rents to gain tenants, which is good news for those who are looking to secure property in Sydney. With falling rental prices, it's likely that initial investors will look to sell property at a lower than average price to move along the sale of the property itself.

Low rents look set to continue in Sydney as a recent report from real estate management firm JLL has predicted that around 61,000 new apartments are to be built in the city between now and 2017.

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