Luxury rentals hit Down Under
Australian property agents forecast a change in fortunes for the exclusive rental market across the Sydney real estate sector and across parts of Melbourne and Brisbane.
New rules from the Treasury that come into force at the beginning of October will mean a removal of lucrative tax breaks for companies and foreign workers renting property in Sydney and other high end housing markets.
Premium properties in the city close to the beach and harbour have been eagerly sought by overseas executives who have taken full advantage of subsidies, tax breaks and concessions in order to enjoy a lavish lifestyle but changes to the living Away From Home Allowance will see a fall in demand for such homes and landlords will be left counting the cost.
In the past companies often included accommodation as part of the salary package in order to attract top notch employees from across the globe but without the tax breaks this practice is unlikely to continue.
Rental rates in exclusive areas including Point Piper and Dawes Point have substantially declined in recent months and are expected to fall further in the months ahead.