Holidays in the Sydney suburbs continued to increase in July. It appears, however, that this hike is now being driven by the outer suburbs as conditions in the inner ring begin to tighten.
Holidays in Sydney increased for the fifth consecutive month by 5%, according to the latest figures from the Real Estate Institute of New South Wales (REINSW). The holiday peak came from the outer suburbs.
The vacancy rate had been steadily declining since March in the sub-city area, with downtown tenants abandoning properties with higher weekly rents for more affordable options. The vacancy rate in the outskirts of the city, however, unexpectedly fell from 2.6% to 4.3% in July.
The suburbs of the Middle Ring also saw an increase in the vacancy rate, from 5.2% to 5.4%.
"This month's results show COVID-19 is having a significant impact across New South Wales and things are unlikely to be resolved for some time to come," said Tim McKibbin , CEO of REINSW.
In contrast, rental market conditions in the inner city ring road began to tighten, as the outflow of people from the area slowed over the month. In fact, the region's vacancy rate fell from 5.8% to 5.3%.
Most areas of New South Wales also reported a decrease in vacancies. Only Albury and the Murrumbidgee area resisted the trend and recorded higher vacancy rates during the month.
The graph below shows the evolution of vacancy rates in Sydney since August 2019. Next to the graph is a table which shows the latest vacancy rates in regional towns in New South Wales:
Top suburbs:
Scarborough
,
Tuart Hill
,
Collingwood
,
West Wodonga
,
Westmead
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