No ease-off in rental demand

This continued low supply of rental property in Sydney makes buying an attractive option for those who are ready to make the move as demand pressures may eventually flow through to rent rises, said Cristine Castle, President of REINSW.

“There is a good supply of affordable housing, particularly units, in some areas," she said. “Sellers that are realistic about what prices their properties can fetch should find the buyers are out there as we move closer to the spring market.”

Mrs Castle said the property market typically picks up at the end of winter and she hopes the recent interest rate rise does not put people off putting their home up for sale, if they are ready to do so. The slow release of land and other factors mean there is pent up demand for property which must be matched with supply.

“Buying a home is always a priority for families looking for longer-term security,” she said.

“The message needs to get out that there are buyers out there looking for property, including investors who provide the rental accommodation that is in such short supply and such high demand,” said Mrs Castle.

Residential vacancy rates in NSW:

  July
2007
June
2007
May
2007
April
2007
March
2007
SYDNEY 1.4% 1.5% 1.3% 1.4% 1.2%
Inner (0-10km from CBD)  1.4 1.7 1.3 1.3 1.1
Middle (10-25km) 1.4 1.4 1.2 1.2 1.2
Outer (>25km) 1.5 1.3 1.4 1.7 1.6
           
HUNTER 1.9 1.7 2.1 2.2 2.0
Newcastle 1.8 1.6 2.1 2.5 2.1
Other 2.0 1.8 2.1 1.7 1.9
           
ILLAWARRA 3.0 2.9 2.7 2.8 2.4
Wollongong 3.2 2.7 2.5 2.9 2.1
Other 2.8 3.6 3.7 2.6 3.6
           
Central Coast 4.6 3.5 2.6 3.3 2.7
           
Albury 2.8 3.2 3.3 2.6 2.4
Central West 4.0 5.0 4.8 4.3 5.2
Coffs Harbour 2.4 3.7 5.9 4.6 3.5
Mid-North Coast 4.0 3.6 3.9 3.4 3.4
New England 3.5 2.8 2.9 3.5 3.5
Northern Rivers 2.6 1.8 1.9 2.1 1.7
Orana 1.4 1.7 2.3 1.8 1.6
Riverina 6.2 3.9 3.4 3.5 4.4
South Coast 4.8 4.8 4.5 4.1 3.8
South Eastern 2.0 1.3 1.2 1.3 1.4

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.

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