Residential vacancies in Sydney have once again increased, indicating that the apparent rollercoaster of the city’s rental market isn’t set to level out any time soon.
According to November data from the Real Estate Institute of NSW (REINSW), vacancies increased 0.2 per cent in the state capital over the month of November, bringing the overall rate to 3 per cent.
That follows a series of months where the rate bounced around the mid 2 per cent to 3 per cent mark, after falling from a yearly high of 4.3 per cent in April 2021.
REINSW CEO Tim McKibbin said that while it was common to see the rate rise around the holidays, the events of the past year meant a traditional trajectory was anything but assured.
“Data from past years has shown us that it’s the norm for vacancies to increase across Sydney heading into the Christmas and New Year break. However, the market has been far from ‘the norm’ since April last year,” Mr McKibbin said.
He commended landlords and tenants alike for rolling with the punches of the year’s ups and downs, doing their best “to respond to unpredictable market conditions”.
Outside of Sydney, REINSW’s data showed that the number of available properties continued to remain low.
The vacancy rate in Wollongong dropped over the month to 0.7 per cent, while it rose slightly in Newcastle, sitting at 2 per cent.
“Rates in the Central Coast, Central West, Coffs Harbour, New England, Northern Rivers and Orana areas all dropped in November 2021, while the Albury, Mid-North Coast, Murrumbidgee, Riverina, South Coast and South Eastern areas each experience a slight uptick in the availability of rental accommodation,” Mr McKibbin said.
“High vaccination rates, easing restrictions, and state and international border openings will undoubtedly have an impact on the vacancy rates across New South Wales and we’ll be watching the market with great interest as we head into the New Year.”
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Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.