Sydney Rental Market - High Listed Prices to Solicit Bids Legally?

LMartyn133 on 07/10/2023 - 12:03
Last edited 07/10/2023 - 12:19 by 1 other user

Hey everyone, looking to rent a place in Sydney.

I have found listed prices to be exorbitant compared to known recent rental history. E.g. one of the places I inspected today had an asking price of $610 per week, but recent rental prices in the same building (2022-2023) are in the $400-$500 range.

My question is this, are places listing inflated asking prices with the expectation that no one will pay for it in order to get around rent bidding laws? Is it expected most people will submit applications with prices lower than the listed value?

• 

  Hybroid on 07/10/2023 - 12:06

  Depends where I suppose. If it's in the CBD, every viewing has at least 30-40 people standing in a line waiting across the lobby while agent ferrys people up.

  If you don't snap it up immediately when viewing and say I'll take it, someone else will 5 mins later. Regardless of price, they all get taken. Demand is crazy so no need to set it at lower price points.

  • 

    Martyn133 on 07/10/2023 - 12:28

    +1

    Bit further west around Lane Cove, only 6 people showed up today which was the 2nd inspection. Other inspection was at 3pm Thursday and was a day after listing so I can't imagine too many people attended the first one?

    Just considering whether we should actually be applying at the $610 price point or should enter our preferred rent somewhat lower. Could afford the $610 price tag but would prefer not too if it isn't required..

    • 

      Gunnar on 07/10/2023 - 14:53

      +1

      Sometimes landlords will price it high because that’s their expectation or they just want to put it up and see if there are any bites

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  tsunamisurfer on 07/10/2023 - 12:51

  -3

  We would not have these games if we just allowed open rental bidding.

  It is the most efficient and transparent way of achieving equilibrium rent without the REA needing to work the parties.

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  spackbace on 07/10/2023 - 13:05

  +2

  Maybe to stop people bidding over the advertised price?

  • 

    hasher22 on 07/10/2023 - 13:21

    +5

    They did change the law in NSW for rental bidding, though it's the most stupid policy. REAs cannot hint, offer or suggest rental bidding but the candidate can still rent bid and the REA and LL can choose based on this figure given.

    Rent bidding should be banned all together and the advertise price should be the price an applicant pays.

    • 

      AustriaBargain on 07/10/2023 - 19:22

      The agent can also tell you that someone else bedded $650, for example. They can't ask you to bid or suggest it, but if you read between the lines you can tell they are saying you should bid $680 if you really want it.

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  rumblytangara on 07/10/2023 - 13:17

  When I was renting my place out (I was overseas) it was just listed at a certain price and my PM never mentioned anything about people trying to negotiate prices higher or lower… it was a take it or leave it deal and we both viewed negotiation as a waste of time for both of us. If it didn't rent out for a couple weeks or a month, then so be it. I thought this was normal.

  It was always rented out really fast though, so perhaps it was simply priced on the low side.

  This was also before the rental market went absolutely nuts.

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  AustriaBargain on 07/10/2023 - 19:21

  -1

  You still might want to bid more than that if you want to live there and need somewhere to live. It's going to take many years to increase supply, especially around Sydney.

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  Martyn133 on 16/10/2023 - 15:16

  If anyone was curious, rental asking price for the property has just dropped from 610 to 595. Seen quite a few properties following similar trends in the area.