Wollongong rental market - tightest for three years - and lowest in NSW: REINSW

Wollongong rental market - tightest for three years - and lowest in NSW: REINSW
Jessie RichardsonDecember 7, 2020

Vacancy rates in Wollongong and the Northern Rivers are now lower than those in the Sydney inner city, according to the latest Real Estate Institute of New South Wales (REINSW) Vacancy Rate Survey.

The number of available residential rental properties available in Wollongong, the Northern Rivers and Albury all fell significantly last month. REINSW President Malcolm Gunning said that Wollongong offered an alternative to Sydney for renters.

Wollongong vacancy rates have hit lows last seen almost three years ago, with a decline of 0.8% to 1.5%. Across the Illawarra region vacancy rates are at 1.6%, down 0.5%,” said Gunning.

A two bedroom unit (pictured below) located close to WIN Stadium and the Crown Street mall is currently being offered to renters at $280 per week.

Wollongong is an attractive proposition for those who wish to relocate from Sydney. Its beachside location is a more affordable option for those who are seeking a more relaxed lifestyle and this is putting pressure on the number of properties available,” Gunning said.

The three bedroom house pictured below is available to rent in Wollongong for $430 per week, at a rental yield of 4.3%. It’s a fourteen minute bus ride from Wollongong University, and a 10 minute walk to the beach.

 

Gunning noted that low vacancy rates showed that the state’s housing issues extended beyond the capital city.

“It is important for new Premier Mike Baird to take a holistic approach to the housing issues facing the state. It is not isolated to Sydney,” said Gunning.

Vacancy rates for both Albury and the Northern Rivers fell by 0.5% last month. REINSW recorded an April vacancy rate of 1.6% for Albury and 1.5% for the Northern Rivers.

Albury now has the same proportion of properties available to rent as the Sydney inner city market, where the vacancy rate has risen to 1.6%. According to Gunning, the inner city remains Sydney’s tightest market, despite an 0.3% vacancy rate increase.

“In middle Sydney availability rose 0.4% at 2.0% and outer Sydney was up 0.2% at 1.7%,” said Gunning. The Sydney-wide vacancy rate was up 0.3% to 1.7% last month.

Newcastle also saw an increase in its vacancy rate, which rose 0.5% to 3%, despite vacancy rates down by 0.1% overall for the Hunter Region.

Vacancy rates also fell in the South Coast, which dropped by 0.3% to 2.2% for the month, and New England, down 0.1% to 3.4%.

The Central West region has the greatest proportion of rental accommodation available, with vacancy rates jumping 1.4% to 4.9%. Coffs Harbour also saw a slight downturn in its rental market, where the vacancy rate fell 0.2% to 4%.

Observer Terry Ryder tipped Wollongong as a potential hotspot, noting that the city has defied recession predictions following the downsizing of Bluescope Steel.

"A lot of infrastructure and property development money is pumping into Wollongong and real estate markets are rising," said Ryder.

Photo courtesy of Flickr/Creative Commons.

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