Sydney’s inner suburbs see record vacancy rates

91Investors in Sydney may wish to direct their attention to the inner suburbs, given new information from the Real Estate Institute of New South Wales (REINSW).

The February 2014 REINSW Vacancy Rate Survey shows record low vacancy rates for Sydney’s inner suburbs, according to a March 10 statement.

Last month, the number of properties for rent was 1.5 per cent, a 0.3 per cent drop on the previous month.

Falls are ‘dramatic’ 

REINSW President Malcolm Gunning noted that the decreases in vacancy rates were “most dramatic” in Sydney’s inner suburbs.

It was not since March 2012 – a whole two years ago – that these suburbs had a vacancy rate this low .

The demand for housing in Sydney that’s close to the CBD and quality amenities has pushed up interest for many inner-city properties.

In turn, this has pushed house prices up, making renting a more viable option for many.

For this reason, investors may consider looking at these suburbs when they next seek to expand their rental portfolio.

Elsewhere in the capital

The vacancy rate for Sydney overall was 1.7 per cent.

This is only slightly above the rate for the inner-city suburbs alone and represents a 0.2 per cent decrease.

The city’s middle suburbs had an average vacancy rate of 2.0 per cent and the outer suburbs 1.6 per cent.

According to REINSW, “”there is not enough stock available and this combined with the future threat of interest rate increases will see rises in rental prices.”

Such an outcome could help investors rake in higher rental figures but it’s important to buy in the right areas to maximise rental yields.

Having a property management team on board is also a good tactic for busy Sydney landlords.

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