The situation in both the inner city and those suburbs within 10 kilometres of the CBD remained static with vacancy rates of 1.3% and 1.2% respectively. In outer Sydney, the rate dropped to 1.4% – the lowest level recorded. The overall vacancy rate in the Sydney area is 1.3%.
“The pressure is still on for renters, although, according to reports, the clearance rate at auctions is improving which may mean some young people are deciding to take advantage of the first home owners grant and buying,” says Cristine Castle, President of the Real Estate Institute of New South Wales (REINSW).
“However, for those who don’t have this choice, it is going to take investors coming back into the market to lift the supply of rental property.”
Mrs Castle says that the increase in rental returns should encourage a new generation of investors to look at property as part of their investment portfolio.
“There is a great deal of competition for the investment dollar, but property is an excellent long term investment choice,” she says.
“The Sydney market is stable and it is unlikely that prices will drop further. We need people to come into the property investment market to provide homes for those families that have no alternative but to rent.”
Residential vacancy rates in NSW:
|Inner (0-10km from CBD)||1.3||1.3||1.1||1.3|