The supply of rental housing in Sydney declined for the fourth consecutive month in August, bringing the city's vacancy rate to its lowest since 2018.
The latest market update from the Real Estate Institute of New South Wales (REINSW) showed Sydney's vacancy rate to drop to 2.6%, from 4.3% in April.
REINSW CEO Tim McKibbin said this was the lowest vacancy rate recorded in the city since May 2018's 2.4%.
"The latest lockdown is tough, with businesses closed and people out of work," he said.
The decline is due to the continued decline of Sydney's inner and outer rings. Mr McKibbin said mom and dad investors in these areas were selling their hard-earned investment properties to stay afloat.
"With so little inventory on the market, these properties are cornered by homebuyers. The impact is the removal of these properties from the residential rental market," he said.
The limited supply of rental properties has already put upward pressure on rents. According to the latest data from SQM Research, weekly house rents in Sydney have increased 10.2% per year. In contrast, weekly unit rents only increased 0.1% over the year.
Outside of Sydney, vacancies have also declined significantly in Newcastle.
Tight rental conditions are also apparent throughout the New South Wales region, particularly in the Midwest, North East Coast, Murrumbidgee, Northern Rivers, Northern Rivers, North East Coast areas. ; Orana and the south coast.
“The past 18 months have been a roller coaster of ups and downs across New South Wales, leaving owners and tenants to do their best to respond to unpredictable market conditions,” Mr. McKibbin.
"This unpredictability will likely continue, as we see the impact of the current foreclosure conditions continue to trickle down to the vacancy rate numbers over the coming months. "
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