This article is from the Australian Property Journal archive
VACANCIES in Sydney’s residential market have dropped for the third month in a row, as NSW waits to see the impacts of the floods on the market.
According to REINSW’s Vacancy Rate survey, February saw a drop of 0.4% across the city for a rate 2.1%, with declines most pronounced in Sydney’s Inner and Middle Rings.
Sydney’s Inner Ring saw a decline of 0.6% over the month to 2.8%, with the Middle Ring falling by 0.5% to 2.4%, while the Outer Ring held stable at 1.5%.
“While there was a steady exodus of people from Sydney for much of last year, the tide has certainly turned over recent months,” said Tim McKibbin, CEO of REINSW.
Through the rest of the state results were more varied, with Newcastle reporting a 0.1% increase to 1.9%, while Wollongong held stable at 0.4%.
Likewise across their were gains across Albury, Central West, Coffs Harbour, Mid-North Coast, Northern Rivers, Orana, South Coast and South East. While the Central West, Murrumbidgee, New England and Riverina all saw declines.
“In January, as the pre-Christmas lull started to reverse, many REINSW members reported an increase in demand for rental accommodation across Sydney, Newcastle, Wollongong and many regional areas,” said McKibbin.
While the opaqueness in the residential rental market seemed to have lifted with the welcoming of the new year, the impacts of the floods across the state on the market are yet to be fully measured.
“While the full impact is yet to be assessed, we know that many tenants have been displaced across New South Wales and this will inevitably affect vacancy rates in the coming weeks,” added McKibbin.
The recent floods across South East Queensland and Northern NSW have recently been reported as wreaking havoc on lifestyle and retirement communities operator Eureka’s 12 villages in the affected region, from Bundaberg to Lismore.
“Our thoughts are with all landlords, tenants and property managers at this incredibly difficult time,” concluded McKibbin.
