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Grim news for renters, great news for first home buyers
Inner city Sydney suffered one of the largest drops according to the October rental vacancy data released by REINSW today.
Yet the poor news on rental accommodation could be just the incentive first home buyers need to get into the property market according to REINSW President Steve Martin.
“There is no doubt that the rental market is suffering even further given the significant declines recorded in not just Sydney, but on the Central Coast and the Hunter regions,” Mr Martin said.
Rental vacancy figures for October show that available rental accommodation in all of Sydney fell by a further 0.1% to just 1.1%.
Inner Sydney fell to a five month low with just 1.1% of rental properties available, down 0.4% compared to September.
Of the major regional centres, the Central Coast suffered the hardest hit falling 0.8% to just 2.2% available. The Hunter dropped 0.3% to 1.5% while the Illawarra rose 0.3% to 2.1%.
“While the data for October is not good, it may be the case that people tired of looking for rental properties might be now able to afford their own home thanks to the increased first home buyers’ grants now available.
“Yesterday’s 1% cut in official interest rates will also help make property ownership more affordable.
“Getting out of the chronically-ill rental market and into their own house is finally a reality for some renters with falling interest rates and grants increasing housing affordability.
“The current market conditions including the further lowering of interest rates, will also encourage astute investors back into the market which will result in more rental stock becoming available.
“REINSW encourages long-term renters to look at how they might be able to purchase their own home using the benefits now on offer.
“There is no doubt that now is a great time to buy if people are confident of their job security and their capacity to repay a mortgage.
“Now is the perfect time for some to say goodbye to renting forever,” said Mr Martin.
Residential vacancy rates in NSW:
|
October
2008 |
September
2008 |
August
2008 |
July
2008 |
June
2008 |
May
2008 |
| SYDNEY |
1.1% |
1.2% |
1.2% |
1.2% |
1.1% |
0.9% |
| Inner (0-10km from CBD) |
1.1 |
1.5 |
1.4 |
1.2 |
1.4 |
0.9 |
| Middle (10-25km) |
1.1 |
1.1 |
1.1 |
1.3 |
1.1 |
0.8 |
| Outer (>25km) |
1.0 |
1.1 |
1.1 |
1.0 |
0.9 |
0.8 |
| |
|
|
|
|
|
|
| HUNTER |
1.5 |
1.8 |
2.1 |
1.5 |
1.8 |
2.2 |
| Newcastle |
1.6 |
1.6 |
1.6 |
1.5 |
1.8 |
3.1 |
| Other |
1.4 |
2.1 |
2.6 |
1.6 |
1.8 |
1.9 |
| |
|
|
|
|
|
|
| ILLAWARRA |
2.1 |
1.8 |
2.3 |
2.2 |
2.2 |
1.6 |
| Wollongong |
2.2 |
1.4 |
2.1 |
2.3 |
1.3 |
2.0 |
| Other |
1.9 |
2.4 |
2.6 |
2.3 |
3.4 |
1.6 |
| |
|
|
|
|
|
|
| Central Coast |
2.2 |
3.0 |
3.1 |
3.2 |
1.8 |
2.7 |
| |
|
|
|
|
|
|
| Albury |
3.4 |
3.0 |
3.3 |
3.7 |
4.1 |
3.1 |
| Central West |
4.7 |
4.4 |
2.5 |
2.4 |
4.0 |
3.0 |
| Coffs Harbour |
2.9 |
4.1 |
3.4 |
4.6 |
4.9 |
4.0 |
| Mid-North Coast |
2.7 |
2.4 |
2.4 |
2.1 |
2.6 |
2.1 |
| New England |
3.9 |
4.1 |
4.0 |
4.0 |
4.7 |
3.4 |
| Northern Rivers |
2.8 |
1.9 |
2.0 |
1.9 |
1.7 |
2.4 |
| Orana |
3.6 |
2.6 |
2.0 |
1.7 |
2.4 |
3.3 |
| Riverina |
2.6 |
2.7 |
2.7 |
2.6 |
3.3 |
2.3 |
| South Coast |
3.4 |
4.1 |
4.0 |
3.8 |
3.8 |
3.6 |
| South Eastern |
2.5 |
3.7 |
2.7 |
3.8 |
2.0 |
3.3 |
Members can access Vacancy Rate Survey results for the years 2001 to 2007 by clicking here. 
Please direct media enquiries to Julian Brophy on 0408 276 749.
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