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‘No Vacancy’ for Sydney
“The vacancy rate for inner Sydney residential property is 1.6%. The rate for the middle city ring is 1.5%. And in the outer suburbs the rate is 2%,” Mrs Castle said.
“Overall the vacancy rate in the city is 1.7%, which means that we are almost at the stage where Sydney will have to put up the ‘No Vacancy’ sign.”
Mrs Castle said a number of factors are involved but chief among them is the NSW Government’s failure to spur investment in the residential property sector.
“The NSW Government is happy to reap windfall super-profits by ripping hundreds of millions of dollars out of homebuyers’ and investors’ pockets in stamp duty and land tax.
“But the flow on effect of State Government gouging is that fewer investors means fewer properties to rent. And fewer rental properties means greater competition for accommodation by would-be tenants and the end result is higher rents.”
Mrs Castle said that the NSW Government had recently given property owners who will pay land tax in 2007 a reduction of a measly $68 a year that would barely pay for “a night out at the movies.”
“The NSW Government has to do more. If it wants to put up a ‘No Vacancy’ sign over Sydney it is going about it in the right way.”
Mrs Castle said vacancy rates below 2% indicate a tight rental market.
Please direct all media enquiries to REINSW on tel. (02) 9264 2343.
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