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Landlords needn’t fear lockdown on the Lower North Shore

Announcement posted by Writers Who 21 Jul 2021

"We’re in the midst of a rental upgrade race," Michelle Lucas says.

A leading investment specialist, Michelle Lucas of Ray White Lower North Shore Group, is telling local landlords not to panic during the pandemic.

"The state government’s rental moratorium on evictions has caused investors to needlessly press pause on plans to lease properties. And that's costing them precious yield," Ms Lucas said.

Michelle says that the total number of vacancies in Sydney’s rental market has gradually declined over recent months meaning investors are in a strong position, but the moratorium announcement has stirred up uncertainty and that has further shortened rental property supply.

“While last year’s lockdowns invoked unknown territories for the rental market, the sentiment this time around has changed. Tenants have adapted to a new way of working and living, and rather than moving out of fear, prospective renters are moving to the Lower North Shore out of desire,” Ms Lucas explained.

Renters today are spending more time at home, and living expenses that were originally geared towards overseas holidays are now being invested into the total lifestyle at home.
 

View from 11/17 Shellcove Road , Neutral Bay, NSW 2089 - leased yesterday for $1,300 per week - 2 bed, 2 bath, 1 car.

Michelle says there is no shortage of decisive renters in the Lower North Shore as tenants are willing to pay more for destination locations.  

“Upgraders, downsizers and returning expats are continuing to flood our rental market with fervent desires for large open living areas, separate study spaces, ample light and beautiful balconies."

The NSW rental moratorium, which includes a 60 day ban on evictions for tenants who lose at least 25 per cent of their income, has addled landlords. 

“While remote and flexible working remain a semi-permanent reality in this pandemic, Lower North Shore investors risk missing out on property leases and precious yield if they remain idle.”

“We have seen investors jump back into the luxury market this year thanks to strong capital growth opportunities, low interest rates and vibrant rental market promises. However, the current COVID-19 lockdown and news of the rental moratorium has perplexed investors, with many hitting the brakes on listing their rental properties.” 

“Contrary to inner city and eastern suburbs rental markets which rely heavily on international students, vacancy rates in the Lower North Shore are dwindling fast. Active investors are reaping the benefits of enthusiastic renters, while idle investors are missing out.”

Ms Lucas says the already rampant demand for local rentals has been accelerated by the recent lockdown. 

“In the first 14 days of the financial year, we’ve had 582 enquiries for rental properties versus 719 for the full month prior. That means, within a fortnight, we were already at 80 per cent of the total enquiries for June.“

“Two-bedroom and three-bedroom apartments in desirable lifestyle locations are extremely sought after among renters. Increased demand and shortage of stock bodes well for active investors with house rentals prices increasing by around five per cent in some suburbs.”  

Rental listings at Ray White Lower North Shore Group have declined substantially in July. An average of 50 properties listed online per week has dropped to just 25. 

“While lockdown restrictions on open homes have caused us to shift to private property viewings, an upside has emerged. Rather than moving rental properties out of panic as we saw in 2020, tenants are moving exponentially faster and taking advantage of lockdown to acquire local rentals.”

She says videos of rental properties have transformed the way renters are selecting properties. Accelerated by COVID-19 and the digitisation of real estate, they’ve created a personalised property viewing experience.  

“After browsing online, tenants are more decisive. As a result of their online due diligence, we’re seeing more pre-qualified private property viewings and applications are flying in fast. Renters are decisive and rental deposits are being paid in less than 24 hours from first viewing the property.”

“This isn’t the horror story many have been led to believe,” Ms Lucas said.

END