The New South Wales Real Estate Institute reports that rental property vacancies in Sydney are tight due to excess demand and high maintaining prices. To concretize matters, Real Estate Institute NSW President Steve Martin said that the rental vacancy rate in the said city is at 1.3%.
With no significant vacancy increase since July, Martin added that although interest rates for rental properties went lower during the later part of the year, the surge of first home buyers has not sustained the rental demands.
From this number, middle suburb vacancy incurred a 0.1% increase to register a 1.5% rate. Meanwhile inner suburbs registered a 0.1% decline to 1.3% while outer suburb rental vacancy rate stayed at 1.0%. Due to these figures and weakening stimulus factors, the future for renters remains to be bleak.
Nevertheless, first home buyers are still vital in regaining the property market’s strength despite the downgrade of the First Home Owners Grant. Property Council NSW Executive Director Ken Morrison stated that despite the decrease in subsidy, the market will remain but the reduction of the grant amount will create huge effects.
To strengthen this claim, home auctions remained strong in Sydney and Melbourne due to first time home buyers. Recently, Real Estate Institute of Victoria Chief Executive Enzo Raimondo reported clearance results at Melbourne of over 80 per cent for the 27th straight week. Meanwhile, Sydney’s clearance rate is at 68 per cent with sales at $122 million.
In other news, Wollongong’s rental availability rate went 0.2% higher to 1.8%. This is Wollongong’s highest rate since April 2009. Newcastle’s rental availability remained at1.6%.
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