Sydney, regional NSW see vacancy rates rise over March

Meanwhile, the key regional areas of the Illawarra and the Hunter regions saw a decline to 2.2 per cent and held steady, respectively.

Sydney

Looking at the Greater Sydney area, the inner and outer rings of Sydney saw their vacancy rates increase to 3.7 per cent and 3.5 per cent, respectively, from 2.9 per cent and 3.1 per cent.

The middle ring saw its vacancy rate decline to 3.1 per cent from last month’s 3.6 per cent.

The rises, according to REINSW president Leanne Pilkington, were due to supply outweighing demand.

“The vacancy rate in Sydney’s inner ring – areas such as Ashfield, Leichardt and Marrickville – increased in March due to lower demand and high supply. Sydney’s outer ring is also experiencing a similar situation,” Ms Pilkington said.

“Feedback from real estate agencies in areas such as Baulkham Hills and Blacktown has been that old, dated units are harder to lease for the same price they had been getting previously, and landlords are unwilling to drop rental prices.

“In contrast, Sydney’s middle ring is experiencing a decline in vacant properties. According to real estate agencies in areas such as Strathfield and Parramatta, landlords have been willing to reduce rents to attract tenants.”

Illawarra

The Illawarra’s region decline was helped by major regional area Wollongong, which saw its vacancy rate decline to 2.7 per cent from the previous month’s 2.8 per cent. Other areas in the region saw vacancy rates decline to 1.4 per cent from 1.9 per cent in February.

Hunter

The Hunter region’s stability was also seen in major regional city Newcastle, which also saw its vacancy rate hold steady at 2.1 per cent. Other Hunter areas saw a slight vacancy rate decline to 1.5 per cent, falling from the last month’s 1.6 per cent.

Other NSW areas

Looking to the rest of the state, four areas saw a decline in their vacancy rate, with Albury leading the pack at 0.8 of a percentage point, followed by Murrumbidgee at 0.9 of a percentage point, New England at 2.2 per cent and then the South Coast region at 2.6 per cent.

The areas that saw vacancy rate increases included the South Eastern region at 2.9 per cent, the Central Coast and Mid-North Coast both at 2.8 per cent, Coffs Harbour at 2.1 per cent, the Central West region at 2 per cent and Orana at 1.8 per cent.

Meanwhile, the Northern Rivers and Riverina regions held steady at 1.1 per cent and 2.6 per cent, respectively.