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RENTERS LIKELY TO FEEL MORE PAIN
“There are serious issues behind this figure,” said REINSW President Steve Martin. “House prices are rising, making it hard for some to take their first steps on the property ladder. At the same time, ever- increasing interest rates are making it extremely difficult for others to sustain their mortgage payments.
“These factors, plus the lack of affordable housing stock, are contributing to the scarcity of rental accommodation and pushing up rents in those properties that are available. The flow-on effect means that as rents take a larger slice of people’s income, they are finding it very hard to put money aside and save for a home deposit.”
Rents on apartments rose 5.2% in Sydney in the last quarter of 2007, while house rents rose 3.91%. Investment researchers Advisor Edge have predicted house rents in the city could grow by 10-12% this year.
Mr Martin said that the State Government must make it more attractive for property investors to return to the market and take some of the pressure off supply. While there has been a slight reduction in land taxes, he said other initiatives are necessary to attract investment.
“A number of taxes affecting property investment were supposed to be phased out as part of the agreement between the States and the Federal Government when the GST was introduced,” he said. “We call on the State Government to act on this matter and, by doing so, help offer some relief to struggling renters.”
Residential vacancy rates in NSW:
|
January
2008 |
November
2007 |
October
2007 |
September
2007 |
August
2007 |
| SYDNEY |
1.2% |
1.1% |
0.9% |
1.2% |
1.5% |
| Inner (0-10km from CBD) |
1.3 |
1.0 |
0.8 |
1.2 |
1.5 |
| Middle (10-25km) |
1.1 |
1.1 |
1.1 |
1.2 |
1.4 |
| Outer (>25km) |
1.1 |
1.1 |
1.0 |
1.1 |
1.7 |
| |
|
|
|
|
|
| HUNTER |
1.7 |
1.5 |
1.7 |
1.6 |
1.8 |
| Newcastle |
1.6 |
1.4 |
1.4 |
1.4 |
1.6 |
| Other |
1.8 |
1.7 |
2.0 |
1.9 |
2.3 |
| |
|
|
|
|
|
| ILLAWARRA |
1.8 |
2.3 |
2.2 |
2.2 |
3.1 |
| Wollongong |
2.2 |
2.6 |
2.1 |
2.1 |
3.6 |
| Other |
1.5 |
1.4 |
2.3 |
2.2 |
2.4 |
| |
|
|
|
|
|
| Central Coast |
2.2 |
2.1 |
2.4 |
2.4 |
3.2 |
| |
|
|
|
|
|
| Albury |
3.6 |
2.8 |
3.1 |
2.8 |
2.5 |
| Central West |
4.8 |
4.7 |
4.0 |
4.4 |
5.1 |
| Coffs Harbour |
3.6 |
1.5 |
1.2 |
3.4 |
3.0 |
| Mid-North Coast |
1.6 |
1.4 |
2.6 |
2.8 |
2.9 |
| New England |
3.3 |
2.7 |
4.0 |
2.4 |
2.6 |
| Northern Rivers |
1.9 |
1.0 |
1.6 |
1.6 |
1.8 |
| Orana |
3.1 |
3.0 |
2.3 |
2.2 |
1.5 |
| Riverina |
2.6 |
1.8 |
2.1 |
3.1 |
2.2 |
| South Coast |
2.1 |
3.3 |
4.8 |
4.8 |
5.2 |
| South Eastern |
1.4 |
2.6 |
1.8 |
1.4 |
0.8 |
Members can access Vacancy Rate Survey results for the years 2001 to 2007 by clicking here. 
Please direct media enquiries to Steve Martin on 0419 269 687.
For further assistance, contact Dael Climo on (02) 8267 0527.
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