Sydney residential vacancy rates rose for a second month in a row due to the completion of large-scale apartment projects increasing rental stock, according to the Real Estate Institute of New South Wales (REINSW).
The May 2014 REINSW Vacancy Rate Survey saw the number of properties for rent across Sydney rise 0.2 per cent to 1.9 per cent.
“We are getting back to a more neutral position, with high volumes of apartments being completed,” REINSW president Malcolm Gunning said.
“Inner Sydney vacancy rates rose 0.3 per cent to 1.9 per cent, while the middle suburbs saw an increase of 0.5 per cent to 2.5 per cent.
“The hardest area to find rental accommodation was outer Sydne, with a vacancy rate of 1.6 per cent, down 0.1 per cent,” he added.
Mr Gunning said incentives for first home buyers and older Australians are “vital” to helping continue to boost the property market and reduce pressure on those seeking a rental property.
In the Illawarra region the overall vacancy rate rose 0.3 per cent to 1.9 per cent, led by a 0.9 per cent increase to 2.4 per cent in Wollongong, according to REINSW.
The Hunter region was up 0.4 per cent at 3.4 per cent, with the Newcastle vacancy rate increasing 0.9 per cent at 3.9 per cent.
The lowest vacancy rates in the state were in Orana, with a fall of 0.8 per cent at 1.5 per cent, and Albury, which remained steady at 1.6 per cent.
The region with the highest availability was the Central West, which fell 0.2 per cent to 4.7 per cent, while New England rose 0.1 per cent at 3.5 per cent.