Rental availability up slightly but vacancy rates still tight

82Sydney remains a lucrative prospect for property investment, after new information was released by the Real Estate Institute of New South Wales (REINSW) showing that Sydney’s rental market is still tight.

The REINSW’s Vacancy Rate Survey provides useful insight for those with a property portfolio in the booming NSW capital, or who wish to purchase in the area.

Results showed the number of residential properties available for rent in Sydney rose slightly to 1.9 per cent from December to January, which is a 0.1 per cent increase across the whole city. However, despite this small increase, the vacancy rate remains quite tight in the state capital.

The data also showed where rental demand was the strongest and Sydney fared a lot better than many other locations in NSW.

Sydney’s inner suburbs may give investors an idea of where to invest, with availability in this area remaining “steady”. The availability of residential properties for rent in this area remained consistent at 1.8 per cent. The vacancy rate in the outer suburbs rose by just 0.1 per cent.

However, it’s clear that Sydney is the place to buy, with vacancy rates significantly lower than many other areas of NSW, such as Central Coast, Coffs Harbour, New England, Northern Rivers, South Coast and South Eastern.

All of these areas saw a spike in vacancy rates between December and January.

REINSW Deputy President John Cunningham stated that “Sydney has not seen significant rises in recent months”.

Mr Cunningham noted that it is important that property is an attractive prospect for investors, “with the the appropriate incentives, especially during a time of low interest rates”.

The Reserve Bank of Australia’s February 4 decision to keep the cash rate at 2.5 per cent provides good opportunities for property investors who wish to secure affordable finance.

Despite vacancy rates in Sydney increasing slightly from December to January, the figure is less than 2 per cent and low interest rates still make it a viable investment option.

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