Sydney’s residential rental market remains tight: REINSW

Sydney’s residential rental market remains tight, according to data by the Real Estate Institute of NSW. Its June 2013 vacancy rate survey found no change in the number of vacancies in the Sydney metropolitan area at 2.1%, despite a third increase in a row of availability in the inner suburbs.

In June last year, all major metropolitan centres across NSW recorded increases in the percentage of available rental properties. Vacancy rates in Sydney rose 0.1% to 1.8%.

In June this year the survey found:

•       Inner suburbs (0-10km from CBD) up 0.3% to 2.2%

•       Middle suburbs (10-25km ring) steady at 1.9%

•       Outer suburbs (more than 25km out) down 0.2% at 2.1%

In June last year:

• Inner suburbs (0-10km) up 0.2% to 1.8%

• Middle suburbs (10-25km) up 0.1% to 1.8%

• Outer suburbs (25km or more) down 0.1% to 1.8%

“The rise in the inner suburbs - and the decline in vacancy rates in the outer suburbs - have cancelled each other out during June 2013, leaving availability at 2.1% across the Sydney metro area,” REINSW president Christian Payne says.

In June last year, the vacancy rate in Sydney rose 0.1% to 1.8%, with Wollongong recording the biggest increase, up 0.4% to 3.2%. This year it rose 0.3%. Wollongong’s rise continues a trend of vigorous growth in available rental properties.

Last year Payne reported the rate as being more than three times the 0.9% level of June 2011. Newcastle in 2012 increased by 0.1% to 1.7% and the Central Coast rose by 0.2% to 2.8%.  

“While we are pleased that vacancy rates have not declined, we were hoping for a continued increase in availability in what is still a very tight market,” Payne says of the 2013 figures.

Across the state, the Hunter region remains steady for the month at 2.9%, despite an increase of 0.1% in Newcastle at 2.2%. The Illawarra had a rise of 0.4% to 2.5%. The Central Coast continued its steady rise with a jump of 0.6% to 3.2% and the Mid North Coast added 0.5% to 2.9%.

Coffs Harbour – at 3.7% - remains the easiest place to find rental accommodation - despite a decline of 0.3%. Last year Coffs had the state’s highest rental vacancy rate at 5.1% - and the Orana District the lowest at 1.2%. 

Vacancy rates remained steady in Albury at 1.8%, while the South Coast and South East were both at 3.1% with declines of 0.3% and 0.4% respectively.