A lack of incentives for investors has caused Sydney’s rental market to tighten and reach its lowest level in 12 months, according to new figures released by the Real Estate Institute of NSW (REINSW).
All areas of Sydney tightened by 0.1 per cent in April, falling to a vacancy rate of 1.7 per cent.
The inner suburbs currently sit at 1.6 per cent, while the outer suburbs, more than 25km from the CBD, recorded a rental vacancy of 1.7 per cent. The ‘middle suburbs’ dropped to 1.9 per cent.
“Sydney residential vacancies hit levels last seen 12 months ago in April and May 2012,” REINSW President Christian Payne said.
“It is time for the NSW government to recognise the supply issues caused by a lack of incentives to invest in the property market.
“The decision by the RBA to cut interest rates must be supported by appropriate incentives to invest in the property market, including cuts to transfer stamp duty rates in the state budget on 18 June 2013,” Mr Payne said.
Across the state, the Illawarra contracted by 0.4 per cent to 1.8 per cent, led by a decline of 0.4 per cent in Wollongong at 1.9 per cent.
The Central Coast saw a fall of 0.5 per cent to 1.9 per cent and the Northern Rivers region dropped 0.6 per cent to 2.1 per cent.
Orana, which includes the major centres of Dubbo, Cobar and Mudgee, was the most difficult place in which to find rental accommodation for the fourth month in a row. A decline of 0.2 per cent saw Orana with a vacancy rate of 1.4 per cent.
Coffs Harbour was again the easiest place to find rental accommodation despite a decline of 0.2 per cent to 4.1 per cent.