Rental Housing Crisis Looms

The Real Estate Institute of NSW Vacancy Rate Survey for October shows that Sydney will be in the grip of a rapidly worsening rental housing crisis early in the New Year.

REINSW President Cristine Castle said today that NSW Government disincentives to investing including land tax, stamp duty and development fees and charges has created a residential property investment drought every bit as real as the 100 year drought hitting farmers.

“Sydney has virtually put up the ‘No Vacancy’ sign,” Mrs Castle said.

“The overall vacancy rate for the city is now 1.5% and falling.”

“The vacancy rates for inner, middle and outer Sydney are 1.3%, 1.5%, and 1.7% respectively and all of them are trending lower.”

Mrs Castle called on the Iemma Government to urgently abolish Land Tax on residential property to encourage investment and ensure a stock of affordable rental accommodation for families into the future.

“The bottom line is that government taxes and charges have restricted the supply of properties and artificially inflated rents. The NSW Government must address this problem urgently, while people can still find somewhere to live.”

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