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Vacancy rates across NSW varied in January, but the Real Estate Institute of NSW reported that rental vacancies remain at critical levels.
Despite a slight easing in December, REINSW’s latest Vacancy Rate Survey for January 2025 revealed fluctuating vacancy rates, highlighting the ongoing need for more rental properties in NSW.
Sydney’s overall vacancy rate fell by 0.2 per cent, from 2.2 per cent in December 2024 to 2 per cent in January 2025, mostly due to the rate drop in the inner Sydney rings.
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 rate drop, with a 0.8 per cent decline compared to the previous month.
Inner Sydney vacancy rates now sit at 2.2 per cent.
Conversely, Sydney’s middle suburbs, which include Auburn, Bankstown, Burwood, Canterbury, Canada Bay, Hunters Hill, Hurstville, Kogarah, Ku-ring-gai, Manly, Parramatta, Rockdale, Ryde, Strathfield and Willoughby, saw a slight vacancy rate increase of 0.3 per cent.
Sydney’s middle suburbs now have a vacancy rate of 2.1 per cent, up from 1.8 per cent in December 2024.
Similarly, Sydney’s outer region had a slight vacancy rate increase in January, with a 1.9 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 while vacancies across the state fluctuated in January, more rental properties would be needed.
“Vacancy rates continue to hover at historically low levels and the number of properties available to rent keeps diminishing,” McKibbin remarked.
The REINSW vacancy survey showed that rental vacancies in the Hunter region rose slightly, while the Illawarra region declined.
“In the Hunter region, the vacancy rate rose by 0.2 per cent to be 1.5 per cent,” McKibbin said.
“In contrast, vacancies in the Illawarra region dropped by 0.1 per cent to 1.1 per cent.”
McKibbin noted that similar to Sydney, regional NSW experienced a fluctuation in vacancy rates in January, with some parts of the state experiencing a slight easing, while other regions saw their vacancy rate drop.
According to data, the vacancy rates in the Albury, Central Coast, Coffs Harbour, Mid North Coast, Murrumbidgee, New England, Northern Rivers and South Coast areas increased over last month.
Conversely, the Central West, Orana, Riverina and South East areas saw their vacancy rate drop in January.
McKibbin said while some suburbs are seeing a slight ease in vacancy rates, the low supply of residential properties makes the market tougher for renters.
He said the high demand for rental, low stock availability, and high weekly rent are impacting tenants and their capacity to manage the high cost of living.
“In some areas, agents have a long list of pre-qualified tenants, but there’s simply not enough stock available to meet demand,” McKibbin concluded.
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