All Property Was Theft Now It's A Steal For The Renters

Sydney Morning Herald

Thursday August 15, 2002

Gary Fishlock

Sydney's building boom finally allows tenants to pick and choose from a glut of apartments, says Gary Fishlock. Revenge is en suite.

On the way to work every day I walk past seven, count 'em, seven new apartment blocks that are under construction. Some of them are only a modest three or four storeys, others closer to 10, and one, judging by the height of the concrete lift well that protrudes out of the jumble of construction like an enormous finger pointing skywards, is up to 16 storeys. Collectively, these buildings will probably house more than 500 people, and that's in addition to the myriad similar apartment blocks that continue to rise all over the city. It's Sydney and the only way is up, right?

Well, maybe not. It seems that even Sydney has to have its down times, if you're to believe any of the recent media reports about a glut of units and flats in the city at the moment.

And this excess isn't showing any signs of stopping, or even slowing, in the near future. It will be with us for a while yet, the papers are telling us.

It seems the oversupply of units and flats is leading to an increased vacancy rate. In plain language, there just aren't enough people to live in them. I could've told the developers that a long time ago, as could lots of other people who also live in the inner city.

But the million-dollar question is: what does this mean for Sydney's property market? Falling unit prices, according to the banks and real estate agents. But wait, it gets worse: there'll be a flow-on effect.

House rentals will drop, followed by house prices. Oh no! Not in a city like Sydney which prides itself on being expensive. What will people talk about at dinner parties now? What will happen to all those stunning, $500,000 views? They'll become just paltry $450,000 views. This can't be happening.

Well, yes, it can be and it's true. Look at me, all you banks, rich landlords and investors out there, lookamee, lookameee. I've got one word for you: GREED.

According to the Home Prices Guide, which was released this week, median house prices in Sydney rose by about 10 per cent in the June quarter, which translates to about $38,000 in just three months. Great news if you're a bank, an investor or a landlord. I can practically hear them rubbing their hands together and wondering if they should hike up the rental price of their investments another 20 per cent or so.

However, it's bad news if you're a first-time home buyer or, even further down the food chain, a renter. So it's about time the boot was on the other foot.

Come on, fellow renters, and join the revolution.

``It's a gloomy picture," the papers tell us. Well, I beg to differ. It's not a gloomy picture, it's just a picture, gloomy for some, bright for others, depending on where you're sitting.

Why are the renters and the first-home buyers always the ones who have to tolerate an obscenely expensive property market, something that continually disadvantages them, in the interests of a ``strong economy"? Does it make so much difference to the economy whether that extra $50 rent is in my pocket instead of some rich property owner's? I think not.

Now, when I walk past those seven new apartment buildings in their varying stages of construction, I can't help smiling at the unpleasant surprise the owners have all got in store upon completion when they'll be fighting each other to attract tenants.

Worse still, they may even be forced into the doubly undesirable situation of having to offer potential tenants things such as two months rent-free, or long-term leases, or new carpet and paint, and all kinds of juicy carrots just to get some return on their investment.

But, hey, that's the fickle property market in Sydney. Just when you thought you were comfortably riding on its back, it shakes you off and dumps you in the dust.

So let the prices fall. Let them positively tumble to the ground like the debris of an empty, unwanted, superfluous apartment block collapsing under the demolisher's steel ball.

In this column you are invited to apply your wit to anything that makes your blood boil. Send 750 words, with your contact details, to subaltern@smh.com.au. Submissions may be edited and published on the Internet.