Rental vacancies continue to increase across most of Sydney: REINSW
The March REINSW Residential vacancy rate report reveals an increase in vacancies across Sydney, from 3.2 per cent in February to 3.6 per cent to March.
Other key NSW reporting areas such as the Illawarra region saw a 20 basis point fall in the vacancy rate to 2.2 per cent, while the Hunter region remained steady at 1.7 per cent.
The REINSW Residential Vacancy Rate Report is based on the proportion of unlet residential dwellings to the total rent roll of REINSW member agents on the 15th of each month.
Carried out monthly, the research – a survey of REINSW member agents conducted by Survey Matters – collects the total properties on agency rent rolls, the number of properties that were vacant on the 15th of the month, and the postcode in which a majority of agents’ rental properties are located.
The latest report, for March, is based on survey responses covering 113,100 residential rental properties.
Sydney data
Overall, Sydney experienced a 3.6 per cent vacancy rate in March, compared with 3.2 per cent in February. Inner Sydney[2] and Outer Sydney[3] saw a slight increase of 80 basis points and 40 basis points, respectively, while Middle Sydney[4] had a vacancy rate of 3.1 per cent – a drop of 50 basis points from the previous month.
REINSW President Leanne Pilkington says: “The vacancy rate in Sydney’s Inner ring – areas such as Ashfield, Leichardt and Marrickville – increased in March due to lower demand and high supply. Sydney’s outer ring is also experiencing a similar situation. Feedback from real estate agencies in areas such as Baulkham Hills and Blacktown has been that old, dated units are harder to lease for the same price they had been getting previously, and landlords are unwilling to drop rental prices.”
“In contrast, Sydney’s middle ring is experiencing a decline in vacant properties. According to real estate agencies in areas such as Strathfield and Parramatta, landlords have been willing to reduce rents to attract tenants.”
The Hunter region
Overall vacancy rates in the Hunter region remained steady, particularly in Newcastle where there was a 2.1 per cent vacancy rate in both February and March. Other areas in the region[5] dropped by 10 basis points from February, to 1.5 per cent this month.
The Illawarra region
Wollongong and surrounding areas saw 20 basis points fall in rental vacancies, from 2.4 per cent on 15 February, to 2.2 per cent on 15 March.
Other regional NSW areas
The rest of NSW saw mild increases in six key areas: the Central Coast (to 2.8 per cent), Central West (to 2.0 per cent), Coffs Harbour (to 2.1 per cent), Mid-North Coast (to 2.8 per cent), Orana (to 1.8 per cent), and South Eastern (to 2.9 per cent).
Albury (0.8 per cent vacancy rate), Murrumbidgee (0.9 per cent), New England (2.2 per cent), and the South Coast regions (2.6 per cent) saw decreases this month of between 30 and 50 basis points.
Residential vacancy rate percentage
Mar 19 | Feb 19 | Jan 19 | Dec 18 | Nov 18 | Oct 18 | Sep 18 | Aug 18 | Jul 18 | Jun 18 | May 18 | Apr 18 | Mar 18 | |
SYDNEY |
| ||||||||||||
Inner | 3.7 | 2.9 | 3.2 | 3.0 | 2.5 | 2.8 | 2.4 | 2.9 | 2.7 | 2.8 | 2.4 | 2.2 | 1.9 |
Middle | 3.1 | 3.6 | 4.2 | 5.1 | 3.5 | 3.2 | 3.1 | 3.1 | 2.9 | 3.0 | 2.6 | 2.9 | 2.6 |
Outer | 3.5 | 3.1 | 3.5 | 3.3 | 3.0 | 2.8 | 2.9 | 3.1 | 2.7 | 2.4 | 2.4 | 2.5 | 2.3 |
Total | 3.6 | 3.2 | 3.7 | 3.2 | 3.0 | 2.9 | 2.8 | 3.0 | 2.8 | 2.7 | 2.4 | 2.5 | 2.2 |
HUNTER |
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Newcastle | 2.1 | 2.1 | 2.5 | 1.9 | 1.8 | 1.8 | 2.9 | 2.1 | 2.2 | 2.4 | 1.9 | 2.2 | 1.8 |
Other | 1.5 | 1.6 | 1.8 | 1.6 | 1.5 | 1.6 | 1.5 | 1.6 | 1.3 | 1.5 | 1.4 | 1.4 | 1.4 |
Total | 1.7 | 1.7 | 2.0 | 1.9 | 1.6 | 1.6 | 1.9 | 1.8 | 1.7 | 1.9 | 1.6 | 1.7 | 1.6 |
ILLAWARRA |
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2.7 | 2.8 | 3.9 | 2.7 | 2.7 | 2.2 | 2.1 | 2.0 | 2.0 | 2.3 | 2.1 | 2.3 | 2.2 | |
Other | 1.4 | 1.9 | 1.9 | 1.0 | 3.0 | 1.3 | 0.7 | 1.7 | 1.9* | 2.9 | 2.8 | 1.9 | 1.6 |
Total | 2.2 | 2.4 | 2.9 | 1.5 | 2.7 | 1.7 | 1.8 | 2.0 | 2.0 | 2.5 | 2.4 | 2.1 | 1.9 |
|
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Albury | 0.8 | 1.1 | 1.9 | 2.2 | 2.6 | 2.2 | 2.2 | 1.6 | 1.5 | 1.4 | 2.0 | 1.8 | 2.2 |
Central Coast | 2.8 | 2.3 | 2.3 | 2.0 | 1.9 | 2.4 | 1.8 | 2.5 | 2.0 | 2.0 | 2.1 | 2.0 | 2.2 |
Central West | 2.0 | 1.6 | 2.2 | 2.7 | 1.9 | 2.2 | 2.0 | 2.2 | 2.5 | 2.2 | 2.2 | 2.7 | 2.4 |
Coffs Harbour | 2.1 | 1.3 | 1.2 | 1.9 | 1.2 | 1.9 | 1.4 | 3.8 | 2.9 | 1.8 | 2.7 | 3.0 | 3.9 |
Far West | - | - | - | - | - | - | - | - | - | - | - | - | - |
Mid-North Coast | 2.8 | 2.0 | 2.1 | 1.8 | 2.6 | 2.0 | 2.1 | 2.3 | 2.3 | 1.3 | 1.9 | 1.9 | 1.6 |
Murrumbidgee | 0.9 | 1.2 | 1.0 | 0.9 | 0.7 | 1.2 | 1.6 | 1.0 | 0.7 | 1.0 | 0.7 | 1.0 | 1.0 |
New England | 2.2 | 2.7 | 2.1 | 1.9 | 2.0 | 2.5 | 2.2 | 2.2 | 2.3 | 2.3 | 1.9 | 1.9 | 1.9 |
Northern Rivers | 1.1 | 1.1 | 1.4 | 1.4 | 1.3 | 1.3 | 1.3 | 1.0 | 1.3 | 1.5 | 1.3 | 1.3 | 1.2 |
Orana | 1.8 | 1.7 | 1.9 | 2.0 | 1.9 | 1.6 | 2.0 | 1.8 | 1.8 | 1.5 | 1.7 | 2.3 | 1.6 |
Riverina | 2.6 | 2.6 | 3.1 | 2.2 | 2.2 | 2.2 | 1.9 | 3.4 | 3.1 | 3.1 | 3.0 | 2.9 | 2.9 |
South Coast | 2.6 | 3.0 | 1.6 | 1.9 | 1.7 | 1.8 | 1.9 | 2.7 | 3.6 | 2.8 | 3.5 | 3.0 | 2.5 |
South Eastern | 2.9 | 2.5 | 1.3 | 1.8 | 2.1 | 2.0 | 0.5 | 0.6 | 0.3 | 0.6 | 2.5 | 0.7 | 3.5 |