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Fresh research from the Real Estate Institute of NSW has provided insight into Sydney’s rising vacancy rate, with more tenants looking for a change outside the metropolitan hub.
According to the REINSW Vacancy Rate Survey results for September 2020, vacancies in Sydney increased by 0.4 per cent over the month and now sit at 4.1 per cent overall. The Inner and Middle Rings both hit 5.5 per cent, up 0.8 per cent and 0.9 per cent, respectively. Meanwhile, the Outer Ring bucked the trend and dropped 0.3 per cent to 2.4 per cent, the REINSW said.
“Many REINSW members are reporting that the rental market has slowed again across much of Sydney,” REINSW CEO Tim McKibbin commented off-the-back of the findings.
“Property managers are telling us that there are fewer properties coming onto the market and those that do are taking longer to rent. Older properties in need of upgrading are particularly problematic, as tenants become more picky about where they choose to live.”
Further, Mr McKibbin noted that feedback from REINSW members located in regional areas have indicated “that the exodus of tenants from Sydney is continuing, with people seeking out more affordable options further afield from the main metropolitan hubs”.
“Tenants are seizing the opportunity to secure a rental property that suits both their budget and desired lifestyle,” he added.
The REINSW data also shed light on other NSW hotspots.
It found that Newcastle followed a similar trend being seen in Sydney, with vacancies rising to 1.5 per cent (up 0.3 per cent) in September after a small drop last month.
On the other side of the coin, vacancies in Wollongong tightened, falling to 2.1 per cent (down 0.5 per cent).
“Vacancies across much of regional New South Wales remain extremely tight,” Mr McKibbin said.
In conclusion, the CEO noted: “This month’s results show that COVID-19 continues to have a significant impact across the whole of New South Wales, and it’s unlikely that things will settle for a while yet.”