Seasonal vacancy rate fluctuations occurring in Sydney over December

3.9.13Sydney has been an extremely viable real estate market over the last 12 months. A combination of factors – including the Reserve Bank of Australia’s decision to lower the cash rate to a historically low level – have helped the New South Wales capital to undergo some stunning growth.

The latest Real Estate Institute of New South Wales (REINSW) Vacancy Rate Survey recently found that the number of properties in the state for rent increased by 0.2 percentage points to reach a vacancy rate of 1.8 per cent.

REINSW President Malcolm Gunning said the changes were largely seasonal, with the organisation planning to ensure further investment in the state is viable and encouraged.

“We have a long way to go in regard to the major supply issues facing Sydney. We expect to see vacancy rates take a downward turn when January figures are released next month,” said Mr Gunning in a January 14 statement.

In Sydney alone, there were minimal changes between the three regions. Inner suburbs within 10 kilometres of the central business district saw their vacancy rates increase by 0.2 percentage points – climbing from 1.6 per cent up to 1.8 per cent.

Sydney’s middle suburbs (10 to 25 kilometres from the CBD) rose by 0.1 percentage points, climbing from 1.8 per cent up to 1.9 per cent.

The outer suburbs of the capital (over 25 kilometres from the CBD) saw the only drop in the city – falling from 1.9 per cent to a vacancy rate of 1.6 per cent.

This could present a great investment opportunity in Sydney. Coupled with the high approval and financing rates occurring in New South Wales, now could be the perfect time for ambitious investors to expand their portfolios and boost their position in the state’s real estate market.

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