2020 the year of perfect vision? Okay not quite – well far from. But, at a time when the world seems to be asking ‘what happens next?’, we’re asking homeowners to think about what’s happening now.
Right now, we’re seeing a shift in Sydney’s medium term luxury rentals – whereby surging demand for luxury furnished homes is outweighing the market supply.
So, why now?
Expats are returning home with an urgent need to find quality accommodation, and others are trying to find the right property in the perfect location to ride out the ever-changing COVID19 restrictions.
Returning expats and restless jet setters are creating fertile ground for high-end rental properties to generate – say it with me now – UNPRECEDENTED value.
Occupancy woes for homeowners in Sydney are a thing of the past. And yes, we’re aware that April/May occupancy rates plummeted to around 30% in many cases – there’s no sugar coating that stat – but for Sydney-siders we’re now seeing rising demand, mainly attributed to returning expats who have pulled their property from the rental market to accommodate their own living needs here in Aus.
Short-term rentals – especially quality houses – are surpassing the demand for hotels due to privacy, isolation and cleanliness. We have an influx of guests forming a metaphorical line, out of our metaphorical door… quite possibly the only thing NOT metaphorical in that scenario is the number of guests. And, it’s not just anyone – it’s the most sought after profiles. We’re not talking tall, dark and handsome (although that would be nice), we’re talking leaders of industry and professional families, all with budgets between $5-15k per week looking for 3-6 month stays.
Who’s behind the surge?
No, this is not all a mirage dreamt up by a team of property managers.
Expat families are driving the shift from supply, to demand. LUXICO’s client base is 30% expats and many of these are now using properties that are normally available in the luxury short-stay market. On the other hand, we have expats who have been cooped up in high rise apartments in Singapore and Hong Kong, along with business owners in the US and UK, who don’t have a property to move straight into. These guests are looking for an immediate rental solution, with a willingness to compromise and a flexible budget.
What are they looking for?
While guests are making some concessions, here’s the inside scoop on their current ‘must-have’ list.
Health and safety is taking priority. People are prioritising spacious homes, over high-rise apartments. Considering what we’ve seen in Melbourne, low density living is taking shape as one of the highest priorities on guest lists… think retreat rather than rental.
As always, they’re still looking for quality mod-con homes, furnished to a comfortable standard of living – which shouldn’t be a challenge for most top-end homeowners.
So really what we’re saying is – if you’ve ever considered renting your property on a short-to-medium term basis, at a premium rate, then now is your time to start. And if you haven’t considered it already, maybe take note of this sensical rambling.
What we also know is the last thing people need right now is another unforeseen challenge or risk, so let LUXICO do all the heavy lifting for you. The good news is we have a list of quality guests and well-known families, just waiting for a rental opportunity to surface.
Maybe your vacant property could be a chance to earn big, while offering a much needed sanctuary to a deserving Aussie family.
This could go down as one of the biggest win/win investment opportunities to come out of 2020. Now, maybe that’s not the biggest claim to fame considering the year so far. But here at LUXICO, you can’t take the silver lining out of a grey cloud.