A light may be starting to shine at the end of the COVID tunnel, according to the latest results from the REINSW Vacancy Rate Survey.

According to the August edition of the survey vacancies across Sydney overall decreased for the first time in August, after five consecutive months of increases, and now sit at 3.7 per cent – a drop of 1.3 per cent from July.

Similarly, vacancies in the Inner, Middle and Outer Rings of Sydney all recorded easing rates, with drops of 0.6 per cent, 0.8 per cent and 1.9 per cent respectively. 

“The Sydney market is showing the first signs of a turnaround,” said REINSW CEO Tim McKibbin. 

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Source: REINSW

“But even with these drops in August, vacancies across Sydney are still markedly higher than they were at the start of the year.” 

Similarly, the metropolitan hubs of Newcastle and Wollongong both saw a slight easing of vacancies in August, as did many regional areas. 

“Vacancies across most of regional New South Wales remain extremely tight,” said Mr McKibbin.

"The Central Coast, Northern Rivers, Orana and Riverina regions were the only areas to record an increase in vacancies over the last month. 

“Anecdotal feedback from our members indicates that the easing of vacancy rates across much of New South Wales may be attributable to landlords responding to the changed market conditions brought on by the COVID-19 pandemic. 

“With so many people experiencing job losses or reduced pay, many tenants have had to relinquish properties and go in search of more affordable options.

"Landlords faced with vacant properties are now, in turn, reducing weekly rents to entice tenants."

Mr McKibbin said the result was that tenants have the opportunity to secure a rental property that suits their budget, landlords are not faced with vacant properties, and vacancies across the state have reduced. 

“It’s all part of the new ‘COVID-19 normal’ for the residential rental market.” said Mr McKibbin.

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