Sydney vacancy rate eases in December, but REINSW predicts tightening in 2012

Sydney’s residential vacancy rate eased by 0.2% to 1.6% in December, the first increase in three months, according to the latest data from the Real Estate Institute of NSW, which has labeled the increase merely “seasonal”. 

Sydney’s inner suburbs (zero to 10 kilometres from the CBD) and the middle suburbs (10 to 25 kilometres from the CBD) recorded a 0.3% increase in their vacancy rates to 1.5% and 2% respectively in the results released earlier this year. 

In the outer suburbs (more than 25 kilometres from the CBD), vacancies improved by just 0.1% to an extremely tight 1.4%. 

Outside of Sydney vacancy rates deteriorated in other major metropolitan centres, with Newcastle recording a significant decline in available properties for the second consecutive month. 

In December the rental vacancy rate for Newcastle fell by 0.5% to 1.1%, further compounding the 0.3% recorded in November. 

The overall rental vacancy rate across the Hunter region fell by 0.3% to 1.1%. 

In Wollongong the vacancy rate fell by 0.1% to 2.2% while across the entire Illawarra region, the percentage of available properties declined 0.2% to 1.6%. 

Vacancy rates on the central coast rose slightly, up 0.1% to 1.6%. 

REINSW Christian Payne warns the rental situation will only become tighter in 2012. 

“The new year traditionally signals an increase in demand for rental properties across the board. 

“The already low levels of available rental properties are likely to be squeezed even further as people return to work and schools and universities resume for the academic year. 

“Unfortunately for those seeking rental accommodation, the situation will only become more difficult in the first quarter of 2012”, he says.