There has been a bunch of articles in the SMH recently about how tight the sydney rental market is. This was a little disappointing given that we had just started trying to find a place the day the headline proclaiming a 20% increase appeared in the paper the day before we started seriously looking. As usual this was some “research” by one of the various property industry bodies which regularly come out with rosy predictions about sectors of the property market. Typical lazy journalism runs these articles without any scrutiny, indeed they’ve been predicting rebounds in housing prices the entire time its been going down.
The article had the desired effect, overnight some of the advertised properties increased their asking rent 10%, ringing to enquire about another on the following Saturday I was told that “the asking price has gone up because the owner read the article in the paper saying rents were going up 20%”, again they had jacked it up 10%, for a property that already looked a little pricey. Obviously if the prediction is wrong then the market won’t sustain these rises, but at least in the short term it will probably have the desired effect. I do wonder when this research stops being research and starts being market manipulation. Not all of the newspaper articles fall into this category, the discussion of the effect the changes to super rules are having is legitimate, but what I dislike is the hyped up price increase amounts.
My story has a happy ending. We found two places we like on the first weekend of searching, got offered both and took the one we liked best. Further out from the city now, we’ve gone from Glebe to Strathfield, which means I won’t be walking to work in the CBD anymore, but on the upside we now have about 3 times as much space and a yard for the little fella to crawl and soon run around in, but the upside is we are paying a bit less rent.
Update: Another article today but this time about house prices rather than rent. Two different surveys two different answers. Unsuprisingly the mortgage industry research, says
…a contrasting survey of 958 people by the Mortgage Industry Association of Australia (MIAA) and BankWest showed that Australians were becoming increasingly optimistic that house prices would increase in the next year.
The study showed that 42.9 per cent of respondents expected residential property prices to be higher in the next quarter, despite higher rates…
where as a more independent poll found
A survey of 1,894 Australians by News.com.au found that 68 per cent of respondents said that higher interest rates would force home sellers to cut prices, while 42 per cent expected house prices to fall in the next quarter.