Luxury rents fall $300 per week

15 July 2001
By Cindy Martin

Shelley Sykes was offered a $300 a week cut in rent on a luxury unit - without even asking.

She eventually settled on a new unit at Cape Cabarita, near Concord, for $140 a week less than the advertised amount.

The interior designer is one of many Sydney people taking advantage of a soft rental market - and moving into units previously considered out of their price bracket.

Rental property vacancy rates are at their highest for 12 years.

Agents' ads are trying to attract tenants with offers of up to two weeks' free rent and dramatic rent reductions.

"I had a look at Balmain Cove and Balmain Shores," said Ms Sykes, a former British TV lifestyle show presenter. "I was really surprised that a unit advertised at $900 per week was offered to me for $600 per week.

"At another unit at Balmain Shores I was asked to make an offer - even if it was very low.

"But I decided to put in an offer of $510 a week on the Cape Cabarita unit. It was advertised at $650 per week and they accepted my offer."

For $510 a week Ms Sykes has a new three-bedroom unit with water views, enormous living areas, big eat-in kitchen, huge master bedroom with walk-in robe and en suite bathroom, internal laundry, security cage garage and storage.

The complex has a pool, spa, sauna, gym and tennis courts.

It is 15 minutes from Darling Harbour via JetCat, which picks up passengers at Cape Cabarita three times each morning and afternoon.

With a large number of developments being completed at the same time, hundreds of new flats are flooding the market - and property investors are feeling the sting.

Ray White Bondi Junction agent Nicole Brereton said: "It was only weeks ago that I would open a property for inspection and I'd have more than 20 people inspecting it.

"Now I am lucky to have one person through and I practically have to beg to get them to take it."

Ms Brereton was showing The Sun-Herald through a beautifully renovated three-bedroom unit with vast ocean views at Gordons Bay, near Clovelly. The rent was $600 a week but cut to $450 for the first three months.

"Market value is $600 per week but with the competition you have to offer something to attract the renters," Ms Brereton said.

"With interest rates down and people taking advantage of the first home buyers' grants, renters are now buying property, which is really contributing to the oversupply."

Gordons Bay is a popular spot for renters in the east, but the building has several "For Lease" signs on windows. It is two minutes' walk to Clovelly beach, close to transport and has sensational views.

Of other major developments on the market, Jacksons Landing at Pyrmont seemed to offer some of the best rental deals. At its Fleetview units you could rent from as little as $320 for a one-bedroom flat and $440 for a two-bedroom flat with exceptional facilities.

Caroline Fagerlund from McGrath Property Management agreed the rental market was very quiet and said they were working extended hours to accommodate people who could not view a property in normal work hours. "We are usually available from 7am to 7pm," she said. "The market is saturated but we are finding the hardest to move are those in the $500 to $750 price range.

"In the last two weeks we have had established tenants ringing us wanting rent reductions, particularly in buildings such as Horizon or Elan.

"Some landlords at Horizon are being forced to reduce a $750 a week apartment to $700 week to meet the present market. We also have people who don't really need to move who are looking around to find something better for the same rental.

"It is a far cry from the times where 40 people lined up and you took 10 applications for the same property and even unrenovated properties attracted keen applicants."