The eastern Sydney suburb of Woollahra has had the biggest drop in rental prices across Sydney.

Around one quarter of Sydney suburbs recorded a drop in the last three months, according to new PropTrack figures.

Rents were also put on ice, recording no growth, in an additional quarter of the market.

It was the first prolonged period of widespread rent falls or flattening since international borders were reopened following the end of Covid restrictions in 2022.

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Rental prices in Woollahra have fallen $150 per week in the last three months.

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Experts said a recent reduction in tenant demand, coupled with a boost in rental supply, signalled that the days of spectacular rent price hikes could soon be over.

SQM Research director Louis Christopher said landlords upping their rents by staggering amounts – in some cases, by hundreds of dollars – would no longer be the norm.

Previously a rental house in the popular eastern suburb of Woollahra would set you back $1950 a week, now the median was $1800 a week.

That’s almost an $8,000 saving per year.

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Woollahra now had the highest vacancy rate for an area within a 10km radius of the CBD, at 6.2 per cent, according to SQM research.

A vacancy rate of 2-3 per cent normally indicates a market where supply of rentals and demand from tenants are balanced.

A Woollahra rental with three bedrooms listed for $1650 per week.

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The increased available rentals was likely pushing prices down.

Many similar affluent suburbs like Vaucluse and Bondi Beach also had high vacancy rates.

“This tends to happen when the economy slows,” Mr Christopher said.

“Pricey rentals are discretionary spending. No one needs a $2000 a week rental. It’s a choice.

“Owners of medium-sized enterprises who’ve see a drop in earnings, or senior managers who’ve been laid off, will look to save money and moving out of an expensive home is often the first step.”

Point Piper rental units had the biggest drop in price.

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The weekly rent falls on houses in Revesby, Cremorne and Freshwater were $125-$138.

Across the unit market, weekly asking rents fell by $125 in Point Piper, while in Jamisontown, Belmore and Pyrmont the fall was about $50.

Mr Christopher said landlords still held the power across most of Sydney and deeper, sustained rent reductions were unlikely in the coming months.

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BIGGEST RENT FALLS – TOP 10 HOUSES

Woollahra -$150

Revesby -$138

Freshwater -$125

Cremorne -$125

Kensington -$100

Rosebery -$100

Narraweena -$100

Peakhurst -$98

Queens Park -$95

Pitt Town -$90

BIGGEST RENT FALLS – TOP 10 UNITS

Point Piper -$125

Jamisontown -$50

Belmore -$50

Pyrmont -$50

Edgecliff -$45

Penrith -$40

Granville -$40

Dulwich Hill -$40

Dover Heights -$33

Merrylands -$30