As a direct result of COVID-19, rent across the North Shore has plummeted. This has eventually led to the issue of renegotiating leases on behalf of tenants who are threatening to leave if their rents aren’t reduced. The latest issue of the Domain Rent Report has shown that Sydney units are the sector that’s been hit the hardest. The report showed that in the June quarter, rent prices were the lowest they have been in five years.
On the Lower North Shore, rent has fallen by 6.7 per cent. This can be attributed to the decrease in tourists meaning many houses are pushed back into the residential rental sector as opposed to being listed on Airbnb. This impact of the shutdown of international travel as well as overseas migration has seen a 1.5 per cent monthly decline in property prices.
The changes within the market over the course of the pandemic have been caused by a number of factors. These include renters who are returning home from overseas, as well as relationships taking the next step. On a lighter note, there is good news for first home buyers. The NSW government has temporarily scrapped stamp duty on homes that are worth less than $800,000 and will see around 6,000 buyers benefit. This scheme will be available for first-home buyers and adds to the $10,000 first homeowner grants accessible to those purchasing a house that is worth less than $600,000. Premier Gladys Berejiklian has said this scheme will help to get more keys into the doors of new homes and will also seek to boost home construction across NSW, supporting and creating more jobs in the building industry.