New figures have shown vacancy rates in inner Sydney are rising, along with those for the Hunter and Illawarra region.
A report released by the Real Estate Institute of NSW noted that inner Sydney has seen the greatest vacancy increase within the state, from 1.9 per cent in June 2014 to 2.6 per cent in June 2015.
According to REINSW president Malcolm Gunning, it’s the highest rate since September 2005 when vacancy hit 3.0 per cent.
“The increase is due to a large number of apartments that have been released into the market, which are not moving as quickly as expected. This is good news for tenants looking to live in the inner city,” Mr Gunning said.
Middle Sydney declined from 2.1 per cent to 1.9 per cent, while outer Sydney’s vacancy rate rose from 1.5 per cent to 1.7 per cent.
According to Mr Gunning, the rate in outer Sydney remains tight because of lagging construction cycles and major infrastructure projects driving demand.
“We are seeing people moving from the mines to these areas because there are many jobs in construction,” he said.
“In the future you would expect to see rents rise in the outer suburbs and fall in the inner city.”
The Hunter region’s vacancies rose from 3.5 per cent to 3.8 per cent over the year.
Illawarra’s vacancy rate rose from 1.8 per cent to 2.2 per cent, while Wollongong jumped from 2.1 per cent to 2.4 per cent.