20 August 2019

Rental vacancies have seen some interesting fluctuations…which pocket are you in?

REINSW releases its July 2019 Vacancy Rate report

The July REINSW Residential Vacancy Rate Report reveals almost no change in vacancy rates across wider Sydney, with only minor changes in Inner (down 0.4 per cent to 3.0 per cent), and Outer Sydney (down 0.1 per cent to 3.4 per cent). However Middle Sydney saw a greater increase (up 0.7 per cent to 4.1 per cent overall), in particular at Banksia in Southern Sydney.  The Hunter region saw no change with it holding at 1.7 per cent over June and July and the Illawarra region reported a tiny decrease, dropping 0.1 per cent from 2.3 per cent in June to 2.2 per cent in July.

“As you can see the market is now stabilising,” says REINSW CEO, Tim McKibbin. “It will be interesting to watch what happens over the coming months.”


Sydney data

Overall, Sydney experienced a 3.5 per cent vacancy rate in July, which is a 0.1 per cent increase from the June result. Inner Sydney[1] saw a minor decrease of 0.4 per cent, from 3.4 per cent in June to 3.0 per cent in July. Outer Sydney also saw a minor decrease down 0.1 per cent from June to July. Vacancies in Middle Sydney[2] had large increase from 3.4 per cent in June up to 4.1 per cent in July.  In particular, four suburbs had big jumps up in the vacancy rate: Banksia, Ashbury, Dundas and North Turramurra.


The Hunter region

Vacancy rates in the Hunter region remained steady at 1.7 per cent over June and July. Vacancy rates in other areas in the region[3] increased, from 1.6 per cent in June to 1.8 per cent in July. However, Newcastle saw a minor decrease in vacancies from 1.8 per cent in June to 1.6 per cent in July.


The Illawarra region

The Illawarra region experienced a 0.1 per cent decrease in rental vacancies, from 2.3 per cent in June to 2.2 per cent in July. Wollongong saw significant decreases in vacancy rates between June and July, dropping 0.5 per cent to 1.6 per cent. However, vacancy rates in other areas rose significantly by 0.7 per cent from June’s rate of 2.6 per cent to 3.3 per cent in July.

[1] ‘Inner’ includes suburbs in the following LGAs: Ashfield, Botany Bay, Lane Cove, Leichhardt, Marrickville, Mosman, North Sydney, Randwick, Sydney, Waverley and Woollahra.

[2] ‘Middle’ includes suburbs in the following LGAs: Auburn, Bankstown, Burwood, Canterbury, Canada Bay, Hunters Hill, Hurstville, Kogarah, Ku-ring-gai, Manly, Parramatta, Rockdale, Ryde, Strathfield and Willoughby.

[3] Other Hunter regions include: Bellbird, Hawks Nest, Cardiff, Bolton Point, Cooks Hill, Merewether, Beresfield, Muswellbrook, Hamilton, New Lambton, Blacksmiths, Eleebana.


Other regional NSW areas

Between June and July, more than 50 per cent of the other regions reported an increase in vacancies particularly Coffs Harbour and South Coast which increased by 1 per cent each and South Eastern which had the largest increase of 2.2 per cent. There were several areas with decreases, the biggest being a 0.7 per cent decrease in the Mid-North Coast with vacancies there reaching 2.8 per cent.

Year-on-year

For the year ending July 2019, Sydney saw a 0.7 per cent increase in vacancies, from 2.7 per cent to 3.5 per cent. Newcastle and the Illawarra have both seen a 0.2 per cent decrease in the last 12 months, to 1.7 per cent and 2.2 per cent, respectively.

The REINSW Residential Vacancy Rate Report is based on the proportion of unlet residential dwellings to the total rent roll of REINSW member agents on the 15th of each month. Carried out monthly, the research – a survey of REINSW member agents conducted by Survey Matters – collects the total properties on agency rent rolls, the number of properties that were vacant on the 15th of the month, and the postcode in which a majority of agents’ rental properties are located. The suburb-level rates reported by agents are weighted based on ABS Census 2016 Dwelling Characteristics.[4] The July report is based on survey responses covering 125,799 residential rental properties.

Residential vacancy rate percentage

 

July 19

Jun 19

May 19

Apr 19

Mar 19

Feb 19

Jan 19

Dec 18

Nov 18

Oct 18

Sep 18

Aug 18

Jul 18

Jun 18

Inner

3.0

3.4

3.1

3.2

3.7

2.9

3.2

3.0

2.5

2.8

2.4

2.9

2.7

2.8

Middle

4.1

3.4

3.3

3.3

3.1

3.6

4.2

5.1

3.5

3.2

3.1

3.1

2.9

3.0

Outer

3.4

3.5

3.6

3.3

3.5

3.1

3.5

3.3

3.0

2.8

2.9

3.1

2.7

2.4

Total

3.5

3.4

3.4

3.2

3.6

3.2

3.7

3.2

3.0

2.9

2.8

3.0

2.8

2.7

Newcastle

1.6

1.8

1.7

1.4

2.1

2.1

2.5

1.9

1.8

1.8

2.9

2.1

2.2

2.4

Other

1.8

1.6

1.9

1.8

1.5

1.6

1.8

1.6

1.5

1.6

1.5

1.6

1.3

1.5

Total

1.7

1.7

1.8

1.7

1.7

1.7

2.0

1.9

1.6

1.6

1.9

1.8

1.7

1.9

Wollongong

1.6

2.1

3.3

2.7

2.7

2.8

3.9

2.7

2.7

2.2

2.1

2.0

2.0

2.3

Other

3.3

2.6

2.9

2.1

1.4

1.9

1.9

1.0

3.0

1.3

0.7

1.7

1.9*

2.9

Total

2.2

2.3

3.1

2.6

2.2

2.4

2.9

1.5

2.7

1.7

1.8

2.0

2.0

2.5

Albury

1.8

1.6

1.5

1.5

0.8

1.1

1.9

2.2

2.6

2.2

2.2

1.6

1.5

1.4

Central Coast

3.0

3.3

3.0

2.2

2.8

2.3

2.3

2.0

1.9

2.4

1.8

2.5

2.0

2.0

Central West

2.1

2.5

2.2

1.7

2.0

1.6

2.2

2.7

1.9

2.2

2.0

2.2

2.5

2.2

Coffs Harbour

3.2

2.2

3.7

3.4

2.1

1.3

1.2

1.9

1.2

1.9

1.4

3.8

2.9

1.8

Far West

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Mid-North Coast

2.1

2.8

2.0

2.4

2.8

2.0

2.1

1.8

2.6

2.0

2.1

2.3

2.3

1.3

Murrumbidgee

1.1

1.0

1.4

1.2

0.9

1.2

1.0

0.9

0.7

1.2

1.6

1.0

0.7

1.0

New England

2.6

2.3

2.8

2.5

2.2

2.7

2.1

1.9

2.0

2.5

2.2

2.2

2.3

2.3

Northern Rivers

1.9

1.4

2.0

1.5

1.1

1.1

1.4

1.4

1.3

1.3

1.3

1.0

1.3

1.5

Orana

2.5

1.6

2.3

1.5

1.8

1.7

1.9

2.0

1.9

1.6

2.0

1.8

1.8

1.5

Riverina

1.3

1.6

3.0

2.0

2.6

2.6

3.1

2.2

2.2

2.2

1.9

3.4

3.1

3.1

South Coast

2.8

1.8

3.2

3.7

2.6

3.0

1.6

1.9

1.7

1.8

1.9

2.7

3.6

2.8

South Eastern

3.4

1.2

0.9

3.0

2.9

2.5

1.3

1.8

2.1

2.0

0.5

0.6

0.3

0.6

[4] Survey Matters uses ABS data to weight the vacancy rates to ensure that monthly suburb level data does not affect the overall regional vacancy rate more than its proportional representation, irrespective of the size of the agencies reporting the data.


View the Vacancy Survey Results Here.


For more information, please contact:

Darshan Parmar | +61 2 8267 0527 | dparmar@reinsw.com.au


About REINSW

The Real Estate Institute of New South Wales (REINSW) is the peak industry body for real estate agents and property professionals in NSW. It represents more than 2000 agencies across residential sales, property management, commercial, strata management, buyers’ agency, agency services and auctioneering. Established in 1910, REINSW works to improve the standards, professionalism and expertise of its members to continually evolve and innovate the industry. It lobbies the government and industry on behalf of members, develops new products and services to benefit agencies and professionals, and offers training and ongoing professional development. For more information, visit reinsw.com.au.