Residential rental vacancy rates are finally on the rise in Sydney, and the prospect of Freedom Day may have had an impact.
After four months of consecutive drops – almost the amount of time Sydneysiders have spent indoors, the rental vacancy rate has risen once more.
Now that Freedom Day has been and gone, REINSW CEO Tim McKibbin said, “it seems that tenants are once again considering their options to move beyond the Sydney basin”.
“Increasing 0.5 per cent for the month, the vacancy rate for Sydney overall is now 3.1 per cent – the highest it’s been since May 2021,” he revealed.
Across September, vacancies in Sydney’s inner and outer rings increased to 3.7 per cent (+0.8 per cent) and 2.2 per cent (+0.5 per cent), respectively. In contrast, vacancies in the middle ring dropped marginally by 0.1 per cent to be 3.9 per cent.
In Wollongong, the rental vacancy rate also rose by 0.5 per cent to 2 per cent.
But, Sydney and Wollongong’s boosted rental vacancy rate was not seen elsewhere.
In Newcastle, the rental vacancy rate dropped by 0.7 per cent over the month of September and is now down to just 1.5 per cent.
It’s a similar story across a majority of the state’s regions, with Mr McKibbin noting, “vacancy rates in the regions remain historically low and have continued to tighten”.
He said, “the Central West was the only area to record an increase in vacancies during September, though this increase was only slight, and the Riverina and South Coast areas remained stable”.
“All other regional areas recorded drops, indicating that the residential rental market continues to find itself at the mercy of the COVID-19 pandemic.”
It adds to the “rollercoaster ride of ups and downs” seen in the residential rental market since April last year, the CEO commented.
Acknowledging landlords and tenants alike as “doing their best to respond to unpredictable market conditions”, Mr McKibbin concluded by stating: “Let’s hope this unpredictability abates as vaccination levels increase and lockdown conditions ease, and we all start to feel some certainty about the way forward.”
Find the latest update on the re-opening rules for NSW real estate agents and property managers here.
ABOUT THE AUTHOR
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.