Rental vacancies in Sydney remain scarce
Tuesday, November 17, 2009
Finding a rental property in Sydney remains difficult with 1.3 per cent of property available.
RENTAL property vacancies remain tight in Sydney with demand still far exceeding supply and maintaining high prices, according to the NSW Real Estate Institute.
"In Sydney last month the available rental vacancy rate remained at 1.3%, which means the market remains very tight," said REINSW President Steve Martin.
“Sydney’s middle suburbs fared better with a 0.1% increase to 1.5% for the month of October, whilst inner suburbs recorded a 0.1% decrease to 1.3%. There was no change in the rental vacancy rate for outer suburbs, which remained at 1.0%.
“The news was slightly better in Wollongong with the city recording a good increase in available properties for the month. Wollongong recorded a 0.2% increase to 1.8%, which is the highest result recorded since April 2009.
“Newcastle remained unchanged at 1.6%."
Mr Martin said there had been no increase in the vacancy rate in Sydney since July.
“Investment in rental properties has improved over the later part of this year with lower interest rates and good rental income enticing investors into the market. Unfortunately, this combined with the move of first home buyers out of rental accommodation has still not enabled rental supply to match demand." he said.
“As these stimulus factors weaken, and with no sign of demand abating, things will only continue to be difficult for renters over the foreseeable future."
First home buyers are still helping to strengthen the property market despite the Federal Government beginning to wind back its grants, Ken Morrison, executive director of Property Council NSW, said.
“They will be a force. Most people are experiencing some declines in the first home buyer’s market, but obviously that market will still exist. And you’ll just have to wait and see what the drop in the grants to their pre-stimulus levels does, in terms of an impact on the market,” he said.
In addition, auction results remained strong over the weekend in both Sydney and Melbourne, fuelled by first home buyers.
According to Real Estate Institute of Victoria chief executive Enzo Raimondo, Melbourne recording a 27th consecutive weekend with clearance results over 80 percent, while in Sydney clearance rates reached 68 percent, with sales totalling $122 million.
- Daily Telegraph