The ups and downs in the Harbour City’s residential vacancy rate saga has continued with rates falling for the third consecutive month.
The Real Estate Institute of New South Wales (REINSW) vacancy rate survey results for July showed residential rental vacancies fell 0.2 per cent to 2.9 per cent.
REINSW CEO Tim McKibbin said the vacancy rate was now 1.4 per cent lower than April’s high of 4.3 per cent.
“The decrease is attributable to lower vacancies in Sydney’s Inner Ring, where a 0.9 per cent drop brought the rate to 3.1 per cent,” he said.
Mr McKibbin said Sydney’s residential rental market has been hit hard by the COVID-19 pandemic, causing vacancy rates to dramatically change.
“The last 18 months have been a rollercoaster ride of ups and downs across the metropolitan area, leaving landlords and tenants alike doing their best to respond to unpredictable market conditions,” Mr McKibbin said.
“This unpredictability will likely continue as we see the impact of this current lockdown trickle through to vacancy rate figures in the coming months.”
In contrast to the Inner Ring, vacancies in the Middle Ring climbed.
“In contrast, vacancies in the Middle Ring rose by 0.7 per cent to be 3.9 per cent and the rate for the Outer Ring increased by 0.1 per cent to 2.3 per cent,” Mr McKibbin said.
Outside Sydney, while vacancies remained stable in Wollongong at 1.4 per cent, the number of available properties rose significantly in Newcastle.
“At four per cent, which is a 2.4 per cent increase, Newcastle’s vacancy rate is at its highest level since September 2015,” Mr McKibbin said.
“Many member agents in the area are reporting high vacancies, likely attributable to a combination of factors including high rental prices, a reduced level of inquiry and recent lockdown conditions.”
Vacancy rates across regional New South Wales continue to remain extremely tight.
“Rates in the Albury, Coffs Harbour and New England areas dropped in July,” Mr McKibbin said.
“Murrumbidgee and the Riverina remained stable for the month, while the Central Coast, Central West, Mid-North Coast, Northern Rivers, Orana, South Coast and South Eastern areas each experienced a slight uptick in the availability of rental accommodation.”
Mr McKibbin added that property prices being at an all-time high across many metropolitan and regional areas is only adding pressure to the residential rental market.
“Increases in median prices are encouraging many landlords to sell their investment properties and realise the gains, adding to rental stock shortage,” he said.
