Drop in vacancies signals positive news for Sydney residential rental market

The REINSW Vacancy Rate Survey results for June 2021 show that residential rental vacancies in Sydney have dropped for the second consecutive month and the rate now sits at 3.1%.

“This is a further 0.2% drop, after last month’s 1.0% drop to 3.3%,” REINSW CEO Tim McKibbin said. “There’s no doubt that the Sydney residential rental market has been significantly disrupted by the COVID-19 pandemic, however the tightening of the rate signals some signs of people moving back closer to the city.

“Additionally, returning ex-pats are also contributing to the increased demand.”

Mr McKibbin explained that the drop is attributable to lower vacancies in Sydney’s Middle and Outer Rings.

“A 1.4% drop in the Middle Ring brings vacancies to 3.2%, which is the lowest rate we’ve seen for these suburbs since March 2019,” he said. “Vacancies in the Outer Ring also tightened by 0.3% to 2.2%.

“In contrast, after dropping to 3.3% last month, vacancies in the Inner Ring have once again increased by 0.7% to be 4.0%.”

Outside Sydney, vacancies in Newcastle remained stable at 1.6% for the month and Wollongong increased by 0.2% to be 1.4%.

Vacancy rates across regional New South Wales continue to remain historically low.

“Rates in the Albury, Central Coast, Murrumbidgee, Orana, South Coast and South-Eastern areas all dropped in June,” Mr McKibbin said. “Feedback from our members in these areas indicates that stock is extremely tight, as tenants continue to exit the major metropolitan markets to secure a property that suits both their budget and desired lifestyle.”

The Central West and Mid-North Coast areas remained stable for them month, while the Coffs Harbour, New England, Northern Rivers and Riverina areas each experienced increases in the availability of rental accommodation.

The REINSW Residential Vacancy Rate Report is based on the proportion of unlet residential dwellings to the total rent roll of REINSW member agents on the 15th of each month. Carried out monthly, the research – a survey of REINSW member agents conducted by Survey Matters – collects the total properties on agency rent rolls, the number of properties that were vacant on the 15th of the month, and the postcode in which a majority of agents’ rental properties are located. The suburb-level rates reported by agents are weighted based on ABS Census 2016 Dwelling Characteristics. The March 2021 report is based on survey responses covering 113,568 residential rental properties.

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