- The third month in a row the vacancy rate has fallen in Sydney
- Newcastle's rate is at 4% - its highest since 2015
- Pressure in rents will rise due to investors selling properties
The Real Estate Institute of New South Wales (REINSW)’s rental vacancy rate survey results for July 2021 has shown residential rental vacancies in the nation’s largest city have dropped for the third month in a row, along with several regional NSW areas.
In Sydney, the rate fell by 0.2% to 2.9%, meaning the vacancy rate is now 1.4% below the 4.3% high recorded in April.
REINSW CEO Tim McKibbin said this is attributed to Sydney’s Inner Ring where the rate fell to 3.1%, a drop of 0.9%.
“The last 18 months have been a rollercoaster ride of ups and downs across the metropolitan area, leaving landlords and tenants alike doing their best to respond to unpredictable market conditions,” he said.
“This unpredictability will likely continue as we see the impact of this current lockdown trickle through to vacancy rate figures in the coming months.”
While vacancies remained stable in Wollongong, the number of available properties rose significantly in Newcastle.
“At 4.0%, which is a 2.4% increase, Newcastle’s vacancy rate is at its highest level since September 2015,” Mr McKibbin said.
“Many member agents in the area are reporting high vacancies, likely attributable to a combination of factors including high rental prices, a reduced level of enquiry and recent lockdown conditions.”
Tim McKibbin, REINSW CEO
Across regional New South Wales, however, rates continue to remain tight, Mr McKibbin added, noting they fell in the Albury, Coffs Harbour and New England areas.
“Murrumbidgee and the Riverina remained stable for the month, while the Central Coast, Central West, Mid-North Coast, Northern Rivers, Orana, South Coast and South Eastern areas each experienced a slight uptick in the availability of rental accommodation.”
With property prices at an all-time high, Mr McMcibbin warns this will only add pressure to the residential rental market.
“Increases in median prices are encouraging many landlords to sell their investment properties and realise the gains, adding to rental stock shortage,” he said.