Sydney’s rental market slowed through June as the month’s Vacancy Rate Survey saw an overall increase in vacancy rates across the city, according to the Real Estate Institute of New South Wales (REINSW).
The data showed that Sydney’s vacancy rate spiked 0.3 percentage points, with rises of 0.4 percentage points in both Inner and Middle Sydney, to 3.0 % and 2.8%, respectively. Outer Sydney, meanwhile, was steady at 2.4%.
Rental vacancy rates measure the proportion of residential properties vacant and available for rental at a given point in time.
REINSW Deputy President Brett Hunter said that the trend is likely to continue considering the change in season.
“Agents reported fewer enquiries coming through due to the approach of the Winter season,” he said. “An oversupply of apartments is also affecting Middle Sydney.”
Measuring each region’s performance, REINSW reported that Hunter Valley’s vacancy rates were up 0.3 percentage points to 1.9%, led by Newcastle which grew 0.5 percentage points to 2.4%.
The Illawarra, on the other hand, gained 0.1 percentage points to 2.5% with Wollongong tipping upward 0.2 percentage points to 2.3%.
Across regional areas, the Central Coast dropped 0.1 percentage points at 2.0%. Northern Rivers gained 0.2 percentage points to 1.5%, and, finally, New England grew 0.4 percentage points to 2.3%.
The report coincides with SQM Research's June update of rental vacancies, which stated that vacancies reached the highest level since 2005.
Sydney’s vacancy rate in June was at 2.8%, 1 percent higher than the same time in 2017 and also higher than the present national average of 2.3%, according to the investment research firm’s data.
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