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Vacancy rates showed a slight easing in December, but the Real Estate Institute of NSW said it was too early to determine whether rents will decrease longer term.
The latest REINSW Vacancy Rate Survey results showed a modest relief in NSW vacancy rates in December 2024, with Sydney’s vacancy rates rising by 0.4 per cent to 2.2 per cent.
Accounting for the rise was an increase in vacancies in each of the inner, middle and outer suburbs of Sydney.
The inner Sydney rings, which include suburbs in the Ashfield, Botany Bay, Lane Cove, Leichhardt, Marrickville, Mosman, North Sydney, Randwick, Sydney, Waverley and Woollahra LGAs, saw the highest vacancy rates increase, with a 0.9 per cent growth compared to the previous month.
Inner Sydney vacancy rates now sit at 3 per cent.
Sydney’s middle suburbs saw a slight vacancy rate increase of 0.2 per cent, reaching 1.8 per cent compared to November 2024.
The middle suburbs cover Auburn, Bankstown, Burwood, Canterbury, Canada Bay, Hunters Hill, Hurstville, Kogarah, Ku-ring-gai, Manly, Parramatta, Rockdale, Ryde, Strathfield and Willoughby.
Comparatively, the outer Sydney regions had the tightest market in December, with a 1.7 per cent vacancy rate, representing a small 0.2 per cent increase month to month.
The outer suburbs include Baulkham Hills, Blacktown, Blue Mountains, Camden, Campbelltown, Fairfield, Gosford, Hawkesbury, Holroyd, Hornsby, Liverpool, Penrith, Pittwater, Sutherland, Warringah, Wollondilly and Wyong.
REINSW CEO Tim McKibbin said the results were expected and happen every summer.
“What we’re seeing is a seasonal fluctuation, as students vacate for the festive period and families make decisions about where they want to live in the new year,” McKibbin said.
“While this increase is positive, we’re still experiencing extreme lows in the availability of rental accommodation as the rental crisis continues to grip New South Wales.”
Similarly, vacancies rose by 0.1 per cent in the Illawarra region to 1.2 per cent.
However, the Hunter region’s vacancy rate dropped to 1.3 per cent, with Newcastle’s vacancy rate going backward by -0.5 per cent, from a healthy 3.3 per cent in November to 2.8 per cent in December 2024.
Vacancies also fluctuated across regional areas over the last month.
REINSW’s survey results showed that vacancy rates in the Central Coast, Central West, Mid-North Coast, Riverina and South-East areas increased slightly in December.
On the other hand, the vacancy rates of Albury, Coffs Harbour, Murrumbidgee, New England, Northern Rivers, Orana and South Coast dropped.
McKibbin said while this month’s survey does show some easing in rates, “this is no cause for celebration”.
“The residential rental market is fluctuating, but three things remain certain,” he noted.
“The availability of stock is at an all-time low, weekly rents are rising and tenants are faced with ever-increasing living costs.”
“None of these things are showing any signs of getting better – in fact, for many, they’re getting worse,” McKibbin said.
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