Current and future investors: Pay attention to vacancy rates

Inner-Sydney-vacancy-rates-were-16-per-cent-in-April-according-to-the-Real-Estate-Institute-of-New-South-Wales_157_69450_0_14093156_300Particular areas of Sydney will be on investors’ radars, given recent findings by the Real Estate Institute of New South Wales (REINSW).

The industry body released data relating to its April 2014 Vacancy Rate Survey on May 12. Those who already have a property portfolio may find themselves in a good position to use their existing financial leverage in order to buy into these hot areas.

An eye on the inner

Sydney is currently boasting a 1.7 per cent vacancy rate, according to the REINSW.

Inner-ring suburbs showed the best performance in April, with a 1.6 per cent vacancy rate.

Investors wanting to secure real estate in an area with a low vacancy rate may direct their attention to this area, which is located in a zero to 10 km radius from the CBD.

Middle-ring suburbs, which are located 10 to 25 km from the CBD, had a 2 per cent vacancy rate, representing a 0.4 per cent month-on-month increase to April.

Meanwhile, outer Sydney’s vacancy rate was identical to the city average, coming in at 1.7 per cent. This is a 0.2 per cent month-on-month increase, but is lower than the vacancy rate seen in November (1.9 per cent).

REINSW President Malcolm Gunning has dubbed inner Sydney’s vacancy rates “tight”.

Suburbs within the Ashfield, Botany Bay, Waverley, Leichhardt, North Sydney, Randwick, Marrickville, Mosman and Woollahra areas fall within the inner Sydney area.

These local government areas could be worth keeping an eye on. Existing rental property owners in the area may see strong capital growth in the future, but they could also get a great price if they elect to sell, given the strong vacancy rates for the area.

Those wishing to invest further out may consider suburbs in the Campbelltown, Baulkham Hills or Blacktown areas.

Leave a Reply

Your email address will not be published. Required fields are marked *