The REINSW Vacancy Rate Survey results for June 2024 reveals a decline in residential  vacancy demand in inner and middle Sydney, while rental accommodation availability in the  outer ring of Sydney and the rest of New South Wales continues to be critically low. 

“Over the last month, the vacancy rate for Sydney increased to 1.7%, however rates in the  various Rings fluctuated,” REINSW CEO Tim McKibbin said. “Vacancies increased in both the  Inner and Middle Rings to be 2.2% (+0.6%) and 1.6% (+0.4%) respectively, while the  Outer Ring decreased by 0.2% to be 1.3%.” 

Residential vacancies in the Hunter region increased which included a substantial increase in  Newcastle but the Illawarra areas dropped back further. 

“In the Hunter area, the vacancy rate increased by 0.2% to be 1.6%,” Mr McKibbin said.  “The Illawarra area however dropped, now sitting at 1.0% (-0.3%). 

Although some regional areas saw further tightening of vacancy rates, driven by the  continued increase in demand and limited supply, others experienced an easing due to new  developments and a slight decrease in tenant interest. 

“Vacancy rates for the Central Coast, Coffs Harbour, Mid-North Coast, New England, and the  South Coast areas each recorded increases,” Mr McKibbin said. “The Central West, Riverina,  Murrumbidgee, Northern Rivers and South East areas each continue to experience a very  tight rental market. 

“REINSW members across New South Wales report ongoing challenges in the rental market.  Despite having many pre-qualified tenants, agents in certain areas struggle with a severe  shortage of available properties.  

“While the demand for rental accommodation remains critically high, shifting patterns  indicate that tenants are fleeing the Inner City and moving further out thus intensifying  pressure on the outer rings and beyond. 

“The residential rental market is experiencing fluctuations, but multiple issues continue: record-low availability of rental properties, rising weekly rents continuing in many parts of  the State, particularly on the outskirts of Sydney and in the central western areas of NSW. 

“Although these challenges remain significant, the long-promised stage three tax cuts which  began on 1 July as well as the upcoming Federal Government energy rebate will provide some respite for households, but the question remains whether these measures will be sufficient to alleviate the pain of price hikes in a market that sees no end in sight in the high demand for properties? 

Related reading:

REINSW: More hidden taxes for property owners

Dangerously low vacancy rates persist in Queensland - REIQ