The inner Sydney residential vacancy rate has risen to levels last seen 10 years ago as more stock comes onto the market.
The vacancy rate in inner Sydney jumped from the low 1.7 per cent recorded in April and May 2015 to 2.6 per cent in June 2015, according to REINSW.
The institute's president, Malcolm Gunning, said it’s risen to a level last seen some 10 years ago in September 2005, when vacancy rates hit 3 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.”
The vacancy rate across greater Sydney is tighter than the inner suburbs at 2.1 per cent, up a mild 0.2 percentage points from 1.9 per cent in May 2015.
The middle and outer suburbs of Sydney had a different fate with vacancy rates tightening in both areas from May to June 2015.
Middle Sydney dropped 0.3 percentage points from 2.2 per cent to 1.9 per cent, and outer Sydney’s vacancy rate dropped 0.2 percentage points from 1.9 per cent to 1.7 per cent.
“There are declining vacancy rates in outer western Sydney because the construction cycle has lagged the inner city and big infrastructure projects are driving demand,” Mr Gunning said.
“We are seeing people moving from the mines to these areas because there are many jobs in construction.”
“In the future you would expect to see rents rise in the outer suburbs and fall in the inner city.”