Vacancies flatten in Sydney, fall in regions
Rental availability in Sydney is starting to level out but the market in regional centres has tightened.
According to the REINSW, the vacancy rate for Sydney fell just 0.1 per cent in June, for an overall rate of 1.8 per cent.
“Rates above two per cent are considered neutral,” REINSW president Malcolm Gunning said.
Inner Sydney remained unchanged at 1.9 per cent while the outer suburbs saw a decline of 0.1 per cent to 1.5 per cent.
Mr Gunning believes stock levels are increasing throughout the city, so these regions may be poised for a rise in vacancies in coming months.
“More stock continues to enter the marketplace. It isn’t uncommon for those requiring new rental accommodation to pay a little more for newer apartments. With an increase in construction we expect to see vacancy rates continue to rise,” he said.
On the other hand, availability in the middle suburbs has constricted, with a 0.4 per cent drop bringing the vacancy rate down to 2.1 per cent.
In the major regional centres, rental accommodation also became scarce.
The most dramatic movement occurred in Albury, which saw a 0.5 per cent drop in availability.
Only 1.1 per cent of rentals in the town are currently on the market, a level last seen in March 2003.
Mr Gunning said the vibrant town was attracting migrants from the major cities.
“It is growing and has solid employment opportunities. Less incentives for first home buyers see people in the area renting for longer or those from metropolitan areas moving to enjoy a tree-change,” he said.
Rental conditions in other major regional centres are also becoming more favourable for landlords.
In Newcastle, rates dropped by 0.4 per cent to 3.5 per cent while in Wollongong, rates are down by 0.3 per cent for a total of 2.1 per cent.