Sydney’s vacancy rate doesn’t justify APRA recommendations: REINSW

Sydney’s vacancy rate, according to the November 2014 REINSW Vacancy Rate Survey, now sits at 1.7%. This figure was also that posted for Sydney by SQM Research.

With the figure representing a balanced market sitting at the 2.0% mark, REINSW president Malcolm Gunning has said that the vacancy rate suggests that supply isn’t meeting demand.

“Therefore we question the Australian Prudential Regulation Authority’s (APRA) concerns and recommendations for banks to tighten their lending criteria to investors,” Gunning said.

Inner Sydney availability dropped 0.1%, to 1.5%, while outer Sydney increased 0.3% to 1.7%. Middle Sydney fell 0.2% to 2.0%.

“Declines in the inner and middle Sydney were leveled out by the increase in the outer areas. The lows in Inner Sydney have not been seen since February 2013. It is a third month in a row that vacancy rates have been stable at 1.7%,” he said.

Newcastle, the Illawarra, Coffs Harbour, the South Coast and the Northern Rivers also saw drops in vacancy rates.

Meanwhile, the Hunter region remained steady, while Wollongong, the Murrumbidgee, New England, Albury, South Eastern all increased.