Why are condo associations struggling to keep up with condo rents?

Ashton Condominium Association is hoping to fill its vacancy rates with an influx of new buyers, but they are still struggling to make up for lost rental income.

Ashton president Chris Houghton says the association is still expecting to get a few hundred new condo owners this year, but the numbers have not kept up with demand.

He says that is because condo associations have been relying on the government’s low interest rate policies to subsidise their rental income and to cover the cost of maintaining their rental buildings.

“It’s hard for me to see any way to put this on a growth trajectory,” Mr HoughTON said.

In April, Mr Haughton says he and his colleagues had to cut back on their hiring in order to keep pace with the rise in the number of new condos being built in the city. “

I don’t think we’ll ever be able to get back into growth mode.”

In April, Mr Haughton says he and his colleagues had to cut back on their hiring in order to keep pace with the rise in the number of new condos being built in the city.

The average price of a rental property in the CBD had risen from $1.2 million in April to $1 million in June, according to the New South Wales Building Industry Association.

In September, the city’s Housing Industry and Community Services (HICSS) recorded a record $2.3 billion worth of new rental housing for the same period.

However, the number renting in the same month has dropped by almost 20 per cent.

“The biggest thing that’s slowing us down is the rate of new investment we’re getting in, and we’ve been putting off those new buyers for years,” Mr Kline said.

He said the association was also struggling to get new condo units built, because of the low interest rates.

“That’s not necessarily an issue for us, but it is for other condo associations and other developers,” Mr Rinegar said.

It’s not the only problem Mr Haugton and Mr Klines have to worry about.

According to a new report from the Building Industry and Construction Association (BICCA), the association’s rental properties in the inner city are facing “a number of critical issues” and could see a “catastrophic decline” in rental revenue.

A spokesperson for BICCA said there were “no clear signs” that the downturn in the economy had slowed demand for rental accommodation in the outer suburbs.

“With prices continuing to rise, many renters are finding themselves with limited options to afford to live in Sydney’s inner city,” the spokesperson said.