Vacancy rates have lifted across some parts of NSW but the state’s peak industry body has warned the rental crisis is far from over.
The Real Estate Institute of NSW (REINSW) Vacancy Rate Survey results for May show residential vacancies in Sydney remain at crisis levels.
“While the residential vacancy rate for Sydney overall rose by 0.1 per cent to be 1.4 per cent, this is still a historic low,” REINSW Chief Executive Officer Tim McKibbin said.
“Vacancies consistently hovering at this level for months is something the market has not experienced for more than a decade.”
The slight rise in the rate for Sydney overall is a result of vacancies increasing in the Inner Ring of the city from 1.5 per cent to 2.1 per cent.
“However, both the Middle and Outer Rings tightened to be 0.7 per cent (down 0.5 per cent) and 1.2 per cent (down 0.1 per cent) respectively,” Mr McKibbin said.
Outside Sydney, residential vacancies also eased slightly across many areas, with Albury, in southern NSW, recording the largest rise.
In the Murray River city the vacancy rate rose from 0.8 per cent in April to 1.5 per cent in May.
“In the Hunter region, the vacancy rate increased by 0.1 per cent to be 2 per cent,” Mr McKibbin said.
“The Illawarra region also rose, sitting now at 1.8 per cent (up 0.3 per cent).”
Vacancies also remain tight across most regional areas of NSW, with the Central West, Mid North Coast and South East areas each recording drops.
In the Coffs Harbour, Murrumbidgee, New England, Orana, Riverina and South Coast areas vacancy rates eased slightly, while the Central Coast and Northern Rivers areas remained stable.
While this latest survey shows a slight easing in vacancy rates, there is little cause for celebration, according to Mr McKibbin.
“Slight fluctuations are to be expected from month to month, but there’s no doubt that the rental crisis continues to maintain its grip on NSW,” he said.
“The availability of stock in the rental market is at an all-time low, weekly rents are rising and everyone is faced with increased living costs.
“None of these things are showing any signs of getting better – in fact, they’re getting worse.
“Something has to change.”