The availability of rental accommodation in Sydney has increased, according to new data by the Real Estate Institute of New South Wales (REINSW).
The May 2013 REINSW Vacancy Rate Survey found that the vacancy rate for the Sydney metropolitan areas had risen to 2.1 per cent, up from 1.7 per cent in April.
“After three months in a row of residential vacancy declines we are back to levels seen in January,” said REINSW president Christian Payne. “Despite the increase, vacancy rates are still dire.”
Mr Payne explained that the rise was contributed to the return of investors into NSW after being driven out to other states following the introduction of the Vendor Duty in 2004.
“We lost property investors from the market,” he said. “On the back of lower interest rates and lower returns for fixed-term investments or other vehicles for investment, we are starting to see NSW investors come back into the market.
“They’ve got low capital input but higher, or the prospect of increasing, rent because we still do have traditionally low vacancy rates.”
Sydney’s outer suburbs led the increase in the city’s residential vacancies, going up 0.6 per cent to 2.3 per cent.
Mr Payne said this was due to the value of the properties in those areas.
“Everyone has to compete for affordability – the investors, the first home buyers and even the second and third home buyers. They’re all competing for the affordable property and that’s what’s driving them up," he said.
The inner suburbs rose 0.3 per cent to 1.9 per cent while the middle suburbs stayed at 1.9 per cent.
Coffs Harbour remained the suburb with the most rental accommodation, despite falling for the second time in a row to 4.0 per cent, down 0.1 per cent.