Sydney – little movement for inner city vacancy rates

Results from the December 2012 Real Estate Institute of New South Wales (REINSW) Vacancy Rate Survey reveal that Sydney rental tenants experienced a period of relief with increases in vacancy rates across the metro area in November.

According to the survey data, the inner city suburbs rose by 0.1 per cent to reach 1.8 percent, while the middle suburbs rose by 0.2 percent to reach a 2.3 per cent vacancy rate. The outer suburbs also increased by 0.2 percent to 1.8 per cent.

Across NSW, there were also further changes with more rental accommodation becoming available.

Newcastle jumped by 0.4 percent while Albury rose 0.5 percent, to record vacancy rates of 1.6 and 1.9 per cent respectively.

The highest vacancy rate in the state remained in Coffs Harbour, at a current figure of 3.7 per cent, up from the 3.4 per cent it recorded in November 2012.

However, those with a stake in property investment in Sydney may be pleased to hear that the REINSW is cautioning rental tenants to expect a return to the norm sooner rather than later, with the brief respite unlikely to have lasting impacts.

“In 2013, we expect the vacancy rate to quickly reduce back to the tight levels seen in 2012 due to the rising population and lack of new housing developments,” REINSW President Christian Payne said in a January 21 statement.

“These increases are unlikely to last as traditionally, January and February are peak periods for change all over the state as school leavers, university students and people moving jobs settle into new properties.”

While these sentiments may be encouraging, building a successful investment portfolio requires careful consideration regarding your return on investment so if you wish to seek more targeted advice call us today on 03 9621 1044.