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Building boom sees vacancies rise

24 February 2015 Elyse Perrau

“Unprecedented” construction activity has seen an increase in residential rental properties available.

NSW vacancy rates reached 2.0 per cent in January, up from 1.7 per cent in December, according to the Real Estate Institute of New South Wales

REINSW president Malcolm Gunning said for the previous four months vacancy rates had been steady across the metropolitan market.

“This has been broken by an increase in availability in the inner city due to a large volume of new apartment stock entering the marketplace,” he said. 

Availability in inner Sydney jumped from 1.5 per cent to 2.1 per cent, while outer Sydney vacancy rates increased from 1.8 per cent to 2.0 per cent.

Mr Gunning said he expects to see this trend continue as more apartments are completed across the Sydney metropolitan area. 

“We really are seeing unprecedented activity on the building and construction front,” he said.

“This boom will benefit those who are looking for more affordable rental accommodation in easy to access, well sought after locations.”

The Hunter area continues to have solid vacancy rates despite a fall from 3.4 per cent to 3.3 per cent.

Newcastle vacancy rates climbed from 2.4 per cent to 2.7 per cent. 

The Wollongong market remained tight, falling from 1.6 per cent to 1.4 per cent, while the Illawarra region rose from 1.3 per cent to 1.7 per cent.  

In regional areas, south eastern NSW had the highest vacancy rate at 6.2 per cent, up from 5.8 per cent.

The hardest place to find rental accommodation was the far west at 1.0 per cent, down from 3.8 per cent.

[Related: Seasonal slip in vacancy rates]

 

Building boom sees vacancies rise
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