Vacancy rates throughout New South Wales are tightening with inner Sydney hitting a two-year low, according to new data from the Real Estate Institute of New South Wales (REINSW).
The number of properties available for rent in inner Sydney dropped by 0.3 per cent in February, bringing the vacancy rate to its lowest level since March 2012 – 1.5 per cent.
Across the city, vacancies fell by 0.2 per cent, with rates sitting at 1.7 per cent at the end of February.
The rental market was also tight in the outer suburbs, where a 0.1 per cent drop brought the rate to 1.6 per cent.
In the middle suburbs rentals were more easily available, with a rate of two per cent.
REINSW president Malcolm Gunning said investor activity needed to increase across Sydney to prevent rentals becoming unaffordable for tenants.
“The wider picture for Sydney highlights the need for investors to be encouraged to continue purchasing residential property,” he said.
“There is not enough stock available and this combined with the future threat of interest rate increases will see rises in rental prices.”
Major regional centres are also feeling the pressure, according to Mr Gunning.
Vacancies in Wollongong dropped by 0.2 per cent, to a rate of 1.8 per cent.
Coffs Harbour fell by 1.1 per cent, with three per cent of rentals now available.
Newcastle saw available properties decline to 2.4 per cent, while the south coast fell to three per cent.
Northern Rivers, Albury and the Central West all have a vacancy rate of 1.9 per cent.
Only three regions saw rises in rental properties standing vacant, with Murrumbidgee coming in at two per cent, Riverina at 3.9 per cent and Orana at 2.6 per cent.