The Sydney rental market tightened during the month of November, dropping 0.1% to a vacancy rate of 1.8% - according to a report from Real Estate Institute of New South Wales.
The outer suburbs of Sydney dropped the most, with a decline of 0.6% to 1.6% total vacancy rate.
The inner suburbs – within 10 kilometres from the CBD – went against the trend to rise 0.1% to a 1.7% total vacancy.
The middle suburbs – 10 to 25 kilometres from the Sydney CBD – were steady during the month of November at 2.1%.
There were also vacancy drops in Illawarra and Wollongong.
Illawarra declined 0.2% to 2.2% and Wollongong dropped 0.1% to 2.5%.
“The most dramatic change in the state was recorded in the outer suburbs of Sydney, with a fall of 0.6% to 1.6%,” says REINSW president Christian Payne.
“In fact, since August 2012, the vacancy rate in the outer suburbs of Sydney has fallen from a high of 3.1% to 1.6%, a level last seen in March 2012, when the vacancy rate was 1.5%.”
Newcastle also experienced a decline of 0.4% to 1.2% but the Hunter as a whole stayed steady at 1.7%.
Coffs Harbour experienced a decline of 0.2% but continues to have the highest vacancy rates in the state at 3.4%.
The Murrumbidgee continues to grow with a vacancy rate of 1.5%, an increase of 0.1%.
Albury holds the lowest vacancy rate at 1.4%, a drop of 0.2% from October.
“The reduction in interest rates by the Reserve Bank of Australia at their board meeting in December is likely to help stimulate investment in the residential property market. This should have a flow on effect in 2013,” says Payne.