Tenants get the squeeze as Sydney vacancy rates tighten
Sydneysiders who are seeking rental accommodation will likely find the market tough in the coming months, as Sydney vacancy rates tighten, with latest figures indicating that demand is significantly outpacing supply.
The Real Estate Institute of New South Wales (REINSW) released the October 2012 REINSW Vacancy Rate Survey on Tuesday (November 20), which revealed vacancy had dropped significantly from September.
Dropping 0.6 per cent in one month, the falling trend of Sydney vacancy rates was present through all segments of the state capital’s market.
“The middle suburbs of Sydney saw rental accommodation availability drop 0.7 per cent to 2.1 per cent, while the outer suburbs fell a considerable 0.8 per cent to 2.2 per cent,” said REINSW president Christian Payne.
The inner city also dropped by 0.3 per cent to 1.6 per cent over the period.
“Action is required to stimulate investment in the residential property market. Until we see such action, there will continue to be growing numbers of people competing for a smaller number of properties,” added Mr Payne.
“The government needs to incentivise investment in this critical area as a way to tackle the rental crisis that is now entrenched in NSW.”
Although it is a crisis when Sydney vacancy rates tighten – there also lies opportunity
Investors may wish to enter the lucrative metropolitan market while prices and interest rates remain relatively low.
RP Data reports that dwelling values grew a modest 0.6 per cent in Sydney over the year, while the official cash rate sits at 3.25 per cent.
Industry stakeholders are also pushing for another rate cut from the Reserve Bank of Australia (RBA) when they meet for their monthly meeting in December.
Consumer confidence is picking up steam in the area, though a recovery is not expected to occur until the mid-medium term.
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