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Despite vacancy rates lifting in certain areas of NSW, the state’s peak industry body warned that the state’s rental market woes are far from over.
The Real Estate Institute of NSW’s (REINSW) Vacancy Rate Survey results for May showed residential vacancies in Sydney remain at crisis levels.
“While the residential vacancy rate for Sydney overall rose by 0.1 per cent to be 1.4 per cent, this is still a historic low,” REINSW chief executive Tim McKibbin said.
He pointed out the portion of available rental properties in the region have been “consistently hovering” at this level for months and is a trend the market has not experienced for “more than a decade”.
The modest easing in the harbour city’s rental market is a result of vacancies increasing in the inner ring of Sydney, where vacancies rose to 2.1 per cent — representing a monthly increase of 0.6 per cent.
On one hand, both the city’s middle and outer rings tightened to 0.7 per cent (down 0.5 per cent) and 1.2 per cent (down 0.1 per cent), respectively.
Outside of Sydney, residential vacancies have experienced a slight easing across various areas. Notably, in southern NSW, Albury saw a significant rise in vacancy rates from 0.8 per cent in April to 1.5 per cent in May.
During the period, the Hunter region’s vacancy rate also rose by 0.1 per cent, reaching 2 per cent. Similarly, the Illawarra region experienced a rise of 0.3 percent, resulting in a vacancy rate of 1.8 per cent.
Vacancies also remain tight across most regional areas of the state, with the Central West (1.6 per cent to 1.3 per cent), Mid North Coast (1.4 per cent to 1.1 per cent), and South East (3.6 per cent to 1.5 per cent) areas each recording declines on a monthly basis.
Over the month, vacancy rates eased slightly in Coffs Harbour (from 2.2 per cent to 2.6 per cent), Murrumbidgee (from 1.5 per cent to 1.6 per cent), New England (from 2.1 per cent to 2.2 per cent), Orana (from 1.4 per cent to 1.5 per cent) Riverina (from 0.9 per cent to 1.1 per cent), and South Coast areas (from 2.1 per cent to 2.2 per cent).
Meanwhile, the Central Coast and Northern Rivers areas remained stable at 1.7 per cent and 1.4 per cent, respectively.
While the latest data survey shows a slight easing in vacancy rates, Mr McKibbin underlined “there is little cause for celebration”.
“Slight fluctuations are to be expected from month to month, but there’s no doubt that the rental crisis continues to maintain its grip on New South Wales,” he said.
He highlighted the conditions are still dire for the state’s rental market, noting the availability of stock in the rental market is at an all-time low, weekly rents are rising and everyone is faced with increased living costs.
“None of these things are showing any signs of getting better — in fact, they’re getting worse. Something has to change,” Mr McKibbin stated.
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