By this weekend, a contentious kind of property rental will be outlawed in NSW, but there is a catch.
By Saturday, December 17, the Perrottet administration will have regulated the rental market by outlawing “rental auctions.”
Real estate agents must promote a home with a set rental price under the proposed modifications.
The rule will not stop tenants from proposing a greater price than what is posted in order to outbid competitors for a home, thus “unsolicited offers” will still be permitted.
Customer Service Minister Victor Dominello remarked, “I agree that there is no ideal answer; this is about taking the rough edge off.
He said that the government has taken into account the requirements of investors who could be having trouble making their mortgage payments when interest rates rise.
As interest rates rise and more individuals are required to pay their mortgages, he said, “We also have to balance the reality that a lot of people entered the market last year and purchased a house as their nest egg.”
However, the government’s action intends to address the state’s skyrocketing rental costs, where significant hikes have proliferated as a result of rising interest rates.
According to NSW Premier Dominic Perrottet, “auctions are over” in the rental market.
NSW Labor has endorsed the idea but criticized the Coalition for being slow to move against the practice.
Each of the three states—Victoria, Queensland, and Tasmania—has its own version of the rule.
According to Mr. Dominello, the restriction would prevent rental properties from being offered “by negotiation,” “inviting offer,” or with a “price range.”
Renters may notify Fair Trading NSW about unauthorized rental auctions.
According to a survey by PropTrack Market Insight, median weekly advertised rentals have soared by 10.3% in the last year.
The typical rent in Sydney is currently $640 per week, which is more than the national average of $520.
»NSW rental market will alter this weekend, saving renters money«