Rental vacancy rates down as we near Christmas

10 December 2019

Rental vacancy rates down as we near Christmas

Vacancy rates have dropped across the board in Sydney during the month of November, down 0.4% to 3.2%. Overall vacancy rates dropped in the Hunter and Illawarra areas to 1.6% and 2.9% respectively. Newcastle, an outlier, experienced an increase as did Wollongong which showed a significant increase of 2.1%.

“We’ve seen a decline in vacancies in all areas of Sydney, which is unusual for this time of year,” says REINSW CEO Tim McKibbin.

“Newcastle has seen a slight rise in rates, but otherwise the Hunter has followed suit with a downward shift in available properties.”

“The Illawarra has bucked the trend, with vacancies in Wollongong jumping significantly. Agents there are reporting difficult conditions, with a large proportion of homes unlet.”

Sydney data

Total vacancies across Sydney are now sitting at 3.2%, a decrease of 0.4% from the October figure. Rates have remained well above 3% for much of this year with a single drop below 3% in September. It is a shift compared to 2018 where rates remained between 2-3% all year.

Inner Sydney continues to prove popular with tenants. Rates have dropped to 2.4% since last month showing that this area continues to attract tenants. Vacancies in Middle and Outer Sydney also dropped from around the 4% mark to 3.7% and 3.6% respectively.

Darling Point, Cremorne, Auburn and North Turramurra have returned some of the highest vacancy rates, all in excess of 7%.

The most popular suburbs are Coogee, Erskineville, Berala, Chester Hill, Cromer and Camden where vacancies are very low.

The Hunter

Vacancies in the Hunter region decreased 0.2% for the month of November, from 1.8% to 1.6%. Newcastle, however experienced an increase from 2.5% to 2.6%, the highest rate for the area this year.

The Illawarra

Overall, vacancies in the Illawarra rose by 0.5% to 2.9%. Most areas in the region experienced a dive in vacancies with an overall drop of 0.6% reported. However, Wollongong shot up 1.8% from 2.5% to 4.3%, its highest rate since January.

The other regions

Overall other regions reported a decrease in vacancy rates in November with the exception of Albury, the Central West and the Mid-North Coast which reported small increases. Orana remained steady at 1.8% for the second month in a row.

Residential vacancy rate percentage

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. The November report is based on survey responses covering 120,527 residential rental properties.

 

Nov-19

Oct-19

Sep-19

Aug-19

Jul-19

Jul-19

Jun-19

May-19

Apr-19

Mar-19

Feb-19

Jan-19

SYDNEY

                       

Inner

 2.4%

2.7%

3.1%

3.4%

3.0%

3.0%

3.4%

3.1%

3.2%

3.7%

2.9%

3.2%

Middle

3.7%

4.2%

3.0%

3.9%

4.1%

4.1%

3.4%

3.3%

3.3%

3.1%

3.6%

4.2%

Outer

3.6%

3.9%

2.7%

3.5%

3.4%

3.4%

3.5%

3.6%

3.3%

3.5%

3.1%

3.5%

Total

3 .2%

 3.6%

2.9%

3.6%

3.5%

3.5%

3.4%

3.4%

3.2%

3.6%

3.2%

3.7%

HUNTER

                       

Newcastle

2.6%

2.5%

1.2%

1.5%

1.6%

1.6%

1.8%

1.7%

1.4%

2.1%

2.1%

2.5%

Other

1.1%

1.4%

1.0%

1.4%

1.8%

1.8%

1.6%

1.9%

1.8%

1.5%

1.6%

1.8%

Total

1.6%

 1.8%

1.0%

1.4%

1.7%

1.7%

1.7%

1.8%

1.7%

1.7%

1.7%

2.0%

ILLAWARRA

                       

Wollongong

4.3%

2.5%

2.8%

2.4%

1.6%

1.6%

2.1%

3.3%

2.7%

2.7%

2.8%

3.9%

Other

1.5%

2.1%

1.5%

2.3%

3.3%

3.3%

2.6%

2.9%

2.1%

1.4%

1.9%

1.9%

Total

2.9%

 2.4%

2.2%

2.3%

2.2%

2.2%

2.3%

3.1%

2.6%

2.2%

2.4%

2.9%


To download the Media Release Click Here

To view the November Survey Results Click Here

For more information, please contact:
Jessica Husband | + 61 2 9264 2343 | 0404 278149 | jhusband@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.