Struggling first home buyers pushing down Sydney's inner and middle suburb vacancy rates

Stephen TaylorNovember 12, 20130 min read

Vacancy rates across Sydney’s popular inner and middle suburbs have tightened as first home buyers, struggling to afford properties, look to rental accommodation.

The October 2013 Real Estate Institute of New South Wales Vacancy Rate Survey shows availability across the Sydney metropolitan area is steady at 1.7%.

REINSW president Christian Payne said the rate was the lowest the middle suburbs had experienced in 18 months. "It is yet another indicator of how the abolition of incentives on existing properties for first home buyers is causing issues across the marketplace."

Other figures are:

• Inner suburbs (0-10 kilometres from the CBD) are down 0.1% to 1.7%

• Middle suburbs (10-25 kilometres from the CBD) fell 0.2% to 1.6%

• Outer suburbs (more than 25 kilometres from the CBD) are up 0.2% to 1.7%

"First home buyers who can’t afford to buy their dream homes are putting substantial pressure on the

rental market," Payne said.

"Middle suburbs, including Auburn, Burwood, Hunters Hill, Parramatta and Ryde are some of the hardest places to find accommodation in Sydney."

Outside Sydney, the Hunter fell 0.1% to 2.9% despite Newcastle’s increase of 0.7% to 2.4%. The Illawarra remained steady at 2.0% even though Wollongong’s vacancy rate rose 0.4% to 2.3%.

In regional areas, Albury is the hardest place to find rental accommodation after a decline 0.2% to 1.8%. Orana, which had previously held the title, jumped 0.6% to 1.9%.

Northern Rivers’ availability rose 0.2% to 3.1% and New England was up 0.5% to 2.9%.

Meanwhile, the easiest place to find rental accommodation in the state is the Central West after a rise of 0.3% to 4.1%. South Eastern NSW added 0.5% to 4.0%. Coffs Harbour’s availability leapt 0.8% to 3.8%.

staylor@propertyobserver.com.au

 

Stephen Taylor

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