Vacancies ease in Sydney but market remains tight

By Terry Ryder, 16th February 2012

New vacancy figures indicate Sydney’s vacancy rate is the highest since August 2006 – but remains below 2% and is expected to tighten from March onwards.

The Real Estate Institute of NSW says the January rental vacancy rate for the Sydney metropolitan area rose 0.3 percentage points to 1.9%.

All areas of Sydney recorded increases in the percentage of rental properties available. The Inner Suburbs (0-10km from CBD) rose 0.2 to 1.7%, the Middle Suburbs (10-25km from CBD) rose 0.1 to 2.1% and the Outer Suburbs (more than 25km from CBD) rose 0.4 to 1.8%.

Some areas outside of Sydney experienced increases in available properties, with Newcastle’s vacancy rate now 1.5% and Wollongong up to 2.3%.
However, vacancy rates dropped on the Central Coast (1.4%), Central West (1.8%) and Orana (1.2%).



REINSW President Christian Payne says the increase in vacancies will be short-lived and that tenants can soon expect the market to tighten up once more.



"January and February are traditionally peak periods for change in the rental market across NSW as school leavers, university students and families changing jobs or schools settle into new properties,” he says.

"Those looking to join the rental market or move properties from March onwards will find that availability could deteriorate sharply."

ENDS

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