Sydney's rental market continued to tighten over the past month, with its vacancy rate declining for the third month in a row, according to the Real Estate Institute of New South Wales (REINSW).
Vacancy rates in Sydney appear to be on a roller coaster in recent months – the Inner Ring area, for example, had reported highs and lows in its vacancy level , only to cause the recent drop when its vacancy rate fell from 4% to 3.1%.
However, vacancy rates in the Middle Crown and Outer Regions increased during the month to reach 3.9% and 2.3%, respectively.
REINSW CEO Tim McKibbin said recent closures have caused uncertainties in the city's rental market, which is expected to continue over the next few months.
"The past 18 months have been a roller coaster of ups and downs across the metro area, leaving homeowners and tenants to do their best to respond to unpredictable market conditions," McKibbin said.
Outside of Sydney, vacancies remained stable in Wollongong but increased significantly in Newcastle.
More housing became available in Newcastle, lowering its vacancy rate from 1.6% to 4% during the month. This is the region's highest vacancy rate since 2015.
"Many member agents in the region are reporting high vacancies, likely due to a combination of factors, including high rental prices, a reduced level of investigation and recent foreclosure conditions," said Mr. McKibbin.
In all of the NSW regional markets rental terms have remained extremely tight, despite slight increases in vacancy rates in some areas.
Albury, Coffs Harbor and New England saw vacancy declines over the month while Murrumbidgee and the Riverina maintained their current vacancy levels.
Mr. McKibbin said the difficult conditions in Sydney and the rest of New South Wales were good news for property investors.
CoreLogic figures show that prices in Sydney rose 2% during the month, reaching a median of $ 1.02 million. The city achieved a total return of 21.1%.
"Rising median prices are encouraging many homeowners to sell their investment properties and realize the gains, which exacerbates the rental housing shortage," he said.
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