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Vacancies dropped dramatically in Sydney’s inner-city suburbs over the month of October.
According to the Real Estate Institute of NSW’s latest vacancy rate survey, the state has hit a point of stagnation, with marginal changes doing little to bring relief to the rental market.
Inner Sydney in particular was worse off over the month of October, with the vacancy rate falling dramatically in the city’s inner ring to 2 per cent, a decrease of 0.7 per cent.
This shift was offset by increases in the middle and outer suburbs, of 0.4 per cent and 0.2 per cent respectively. Even so, vacancies across these suburbs are still below 2 per cent, with the middle ring sitting at 1.9 per cent and the outer ring at 1.6 per cent.
Overall, this puts Sydney’s vacancy rate at the less-than-healthy level of 1.8 per cent.
REINSW CEO Tim McKibbin described the latest results as a “grim picture”, warning that there was no end in sight for the long-running crisis.
Regional areas saw some fluctuation, though none could be considered to have landed in healthy territory over the month.
In the Hunter region, the vacancy rate rose by 0.2 per cent to be 1.6 per cent, meanwhile vacancies in the Illawarra region dropped to 1.4 per cent.
Vacancy rates in the Albury, Central West, Murrumbidgee, New England, Orana, Riverina and South East areas all increased slightly over the last month, the Central Coast, Coffs Harbour, Northern Rivers and South Coast dropped, while the Mid-North Coast remained stable.
McKibbin said that while the institute is always glad to see some relaxation in some markets over the month, the unfortunate reality is that those marginal changes bring little relief on the ground.
“Fluctuations in vacancy rates from month to month are to be expected and any increase in the availability of rental accommodation is welcomed. However, the increases we’re seeing in some areas do little to put a dent in the rental crisis,” McKibbin said.
“The simple fact is that demand for rental accommodation continues to outstrip supply,” he added.
The CEO added that reports from real estate professionals indicated the situation could worsen as investors weigh up the long-term benefits of their property portfolios against the current regulatory framework.
“Many REINSW members are reporting that landlords are exiting the market in favour of more attractive investment options. There is simply not enough housing to cope with demand and this is putting tremendous pressure on the rental market,” he said.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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