A renter’s market, as Sydney vacancy rates rise: REINSW
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Nov 19, 2018
A renter’s market, as Sydney vacancy rates rise: REINSW
It’s a renters market in Sydney, as vacancy rates rise to 2.9 per cent over October, according to figures from industry body the Real Estate Institute of New South Wales (REINSW).
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MortonPictured: 1102/187 Liverpool Street, Sydney. Available via Morton, as seen on Thehomepage.com.au
If you're looking at entering the Sydney rental market, now is the time to strike. Sydney vacancy rates have risen slightly, lifting 0.1 percentage points to 2.9 per cent.
“There has been a slight slowing in those seeking rental accommodation in Inner and Middle Sydney while the Outer Sydney market saw interest increase,” REINSW President Leanne Pilkington said.
"A vacancy rate above 2 per cent is positive for those seeking rental properties," she told WILLIAMS MEDIA.
An oversupply of new building completions is to thank, according to SQM Research's Louis Christopher.
"Rental vacancies are rising and rents are easing in Sydney due to a surge in building completions and potentially a mild slowdown in the population growth rate. There is now a greater supply of rental accommodation at a time when the growth in rental demand is probably falling a little," Mr Christopher said.
Mr Christopher added that with interstate migration to Queensland increasing, it's likely rents will continue to drop - welcome news for those looking for a Sydney rental property.
"Sydney rents are now down for the year and it is likely rents will continue to slip as there is still a lot of supply coming in the pipeline. I believe Sydney will shortly record a fall in its population growth rate due to a relatively recent steep rise in interstate migration towards Queensland."
Pictured: 1102/187 Liverpool Street, Sydney. Available via Morton, as seen on Thehomepage.com.au
Nick Frankel, Business Growth Manager at Morton, says landlords need to focus on getting, and keeping, good tenants.
"This drop is due to the sheer oversupply of rental properties in the market. Right now, you cannot be too worried about the price. Just focus on getting a good tenant in the door, and keep them," he told WILLIAMS MEDIA.
Matthew Mifsud from Raine & Horne City Living told WILLIAMS MEDIA owners need to adjust their expectations if they want to get their properties leases.
“Rent going down is always to do with supply and demand.
“For example, there has been an increase in supply in Haymarket with 1,500 new apartments,” Mr Mifsud continued.
“Demand has dropped because renters have more choice.”
Related reading:
Where are Sydney's priciest suburbs?
McGrath Report 2019: Regional suburbs, Western Sydney 'hot property'
30 per cent drop forecast for Sydney and Melbourne, but Hobart outlook is strong: SQM Research
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